Reduction in Income Tax Rate Applying to Income Over £150,000 — 28 Nov 2012 at 15:57

The majority of MPs voted in favour of cutting the top rate of income tax applying to income over £150,000 from 50% to 45%.

The rejected motion which was the subject of this vote stated:

• That this House
• notes that HM Revenue and Customs figures show that 8,000 people earning over £1 million will gain an average of £107,500 from the Government’s decision to cut the top rate of income tax from April 2013;
• further notes that figures from the Institute for Fiscal Studies show that the Government’s changes to tax allowances for pensioners will mean that 4.4 million existing pensioners will lose an average of £83 from 2013-14, while thousands of people turning 65 will lose £323; and
• calls on the Government to announce in the Autumn Statement that it will not go ahead with its proposal to cut the top rate of tax for the richest earners at a time when the economy is flatlining, millions of pensioners on middle and low incomes are paying more, and when wider tax and benefit changes being implemented in 2012-13 will result in families with children losing an average of £511.

Debate in Parliament | Source |