We need to raise more tax from the rich to help cut the deficit. That much many people agree. The question is, how do you maximise the tax take from the rich.
In the past when the UK has cut rates of Income Tax and Capital Gains tax the amount paid by the rich has gone up, and the proportion of the total tax paid by the rich has gone up. Today the Adam Smith Institute reinforces this message. They say the 50p rate will lead to lost revenue and slower growth. The expect more rich people to emigrate, and more to find ways of avoiding tax legally. Their Report is entitled “The Revenue and Growth effects of Britain’s high personal taxes”.