Posts Tagged ‘Chancellor George Osborne’

QC Jolyon Maughan, ripping lying spiv Gideon Osborne’s claims before parliament to SHREDS!
http://youtu.be/B4l07CC5xWM The Artist Taxi Driver, Mark McGowan
DID CUTTING THE TOP RATE REALLY RAISE £8BN?
 
Osborne has said that reducing the top rate of income tax from 50p to 45p raised an additional £8bn from the highest earners in its first year. Speaking in the Commons he said the revelation “completely defies” predictions made by Labour that cutting the rate from 50p to 45p would cost £3bn and give top earners an average £10,000 tax cut. HMRC previously estimated that cutting the top rate from 50p to 45p would cost the Exchequer £100m.
Osborne said:
“Under this government the richest pay a higher proportion of income tax than under the last Labour government. Indeed we have just had numbers out this morning from HMRC which for the first time show the income tax data for the year 2013/14, which is when the 50p rate was reduced to 45p.
 
And what that shows is that actually there was an £8bn increase in revenues from additional rate taxpayers, which completely defies the predictions made by the Labour party at the time and shows that what we have are lower, competitive taxes that are paid by all.” ( Guardian Reporter )
 
I don’t have the number to which Osborne refers but it is broadly in line with what was forecast in May 2015 which showed a projected increase in income tax paid by additional rate taxpayers of £7.1bn.
 
Does this increase vindicate, as Osborne suggests, to the tune of £8bn of extra receipts the decision to cut the 50p rate?
 
Reader, it does NOT!
 
Tax receipts were artificially low in 2012-13 (because people delayed receiving income until rates fell) and were artificially high in 2013-14 (when those delayed receipts were received). Combine those two numbers and you may well explain your £7bn jump.
 
Please Read More here, see graphs included: http://waitingfortax.com/2016/03/01/did-cutting-the-top-rate-really-raise-8bn/ Jolyon Maughan QC
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In what has been criticised as disgusting opportunism in invoking WWI.

The chancellor of the exchequer of UK Government has said that it will ‘retire’ £218m of the UK’s £2bn First World War debt by refinancing bonds originally issued by Winston Churchill.
The UK has paid a total of £1.26bn in interest on these bonds since then.
The debt has not been paid off before because of the relatively low interest it incurs.
The Treasury plans to cut the annual cost of the debt by re-borrowing money at current market rates. It is the first such move for 67 years.
The bonds that Chancellor George Osborne has acquired have a lower rate than the 4% interest on the debt.
The continued existence of the war bond debt illustrates the lasting shadow cast by World War One.
According to the UK Treasury there are currently 11,200 registered holders of the bonds.
Winston Churchill first issued “4% Consols” in 1927 when he was Chancellor partly to refinance bonds from the First World War.
In addition to the war bonds, some of the debt being refinanced by the Treasury dates back to the 18th Century.
One of these bonds was issued by William Gladstone in 1853 to consolidate the capital stock of the South Sea Company, which was founded in 1711.
The South Sea Company collapsed during the South Sea Bubble financial crisis of 1720, leaving behind it a lot of debt.
In 1932 Chancellor Neville Chamberlain converted some war bonds into “perpetuals”. This gave the government the right not to pay back the loans, as long as they continued paying 3.5% interest on them.
Perpetual bonds, as the name suggests, pay a steady stream of interest forever.