Alexander speaks out in favour of the 50pc tax rate

People and businesses awaiting a potential abolition of the controversial 50 per cent rate of income tax have been dismayed to hear senior Liberal Democrat, Danny Alexander, speak out firmly against its abolition. Alexander, who is Chief Secretary to the Treasury, spoke out on the weekend to state that the tax rate is raising millions of pounds for the economy, and poured water on claims that it is harming the economy. Alexander said that it did not appear to have caused a rise in the number of high-earning people leaving the UK.He added that the tax was proving very efficient at ensuring that Britain's rich contribute "their fair share" in paying down Britain's debt. The tax is levied on people who have incomes of more than £150,000, and has seen many senior Tories and senior business leaders speak out against it. Alexander also said that he believed an HMRC review of the tax rate, which was ordered by the Chancellor of the Exchequer, George Osborne, in March, will conclude that the tax rate "is making money for the Government". This goes against the predictions of an independent committee of finance experts, who believe that the review will show that the tax is actually losing revenue for the government.

http://www.50percenttax.co.uk/index/2011/11/23/alexander-speaks-out-in-favour-of-the-50pc-tax-rate.html