The Treasury official figures said putting the 50p tax rate down to 45p would entail a loss of £100m of tax revenue. Instead, as some of us forecast, it has led to a surge in additional tax.
Self assessed income tax reached £22.5bn in 2008-9 when the top rate was 40%. In 2011-12 it was just £20.33bn and in 2012-13 just £20.55bn when the top rate was 50%. As self assessment tax was up by £1.66bn this January on last January, the full tax year 2014-15 is likely to see a substantial gain on the receipts during the 50% years.
The Guardian tendency claim this is a one off event owing to delays in paying bonuses from the previous year. This does not explain why revenues were lower at the 50% rate in the years prior to the year of the announcement of a cut in the rate, nor does it explain why the revenues were always lower at 50% than they had been at 40% before the increase.
Far from costing the state £100 m the 45% rate will bring in substantial extra revenue. The figures also suggest moving up from 40% has lost the state billions.