The Recent History Of The Additional Rate Of Income Tax

Overview: The Recent History of the Additional Rate of Income Tax It is important to note, from the onset, that income tax remains the government’s largest revenue source – effectively raking in an average of 30 percent of the total tax collected. In essence, every individual has what is referred to as personal allowance on income tax, whereby every tax year, all incomes that do not exceed the set allowance are not taxed. All other income is subject to the various tax rates captured in several bands. In the year 2009 budget, it was announced that beginning April 2010, individuals raking in incomes exceeding  £150,000 would be subject to a new 50% tax rate (HM Revenue Customs, 2014). The previous rate, prior to the introduction of the top rate by the Labor government had been 45p. However, the incoming government reduced the top rate to 45p – a change that took effect from 2013 April. It is important to note that all incomes that do not exceed  £32,000 are, at the moment, subject to a basic tax rate of 20%. For those raking in more than  £32,011 (with a ceiling of  £150,000), a higher rate applies. According to the proposal to restore the 50% additional rate of income tax, 50% of incomes exceeding  £150,000 (which are at present taxed at the rate of 45%) ought to be handed over to Her Majesty’s Revenue and Customs (HMRC) as tax. The person fronting the said proposal is Ed Balls, a Labor Party politician. Should the 50% Additional Rate of Income Tax Rate beShow MoreRelatedShould The Uk Government Restore The 50 % Additional Rate Of Income Tax? Essay1381 Words   |  6 PagesRestore the 50% Additional Rate of Income Tax? The United Kingdom has developed to become one the highest taxed nations across the globe despite impaired competitiveness and stifled economic growth. Unlike most OECD countries that have lessened their tax burdens since 1997, UK taxation has increased, which has resulted in reduced competitiveness of the country’s position as a low tax regime. The other characteristics of UK taxation include forcing taxpayers into higher rate tax bands, which enforcesRead MoreEssay On The Corporate Tax1432 Words   |  6 PagesWas the Corporate Tax Cut Necessary? The recent passage of tax reform by the US Senate raises the spectre of the statutory corporate tax rate falling to 20% from 35%. Republicans justify the measure by claiming that the statutory rate is too high and, furthermore, they assert that lowering its level will induce US corporations to feel less inclined to use overseas tax shelters. The reality is, however, that corporations seldom pay the statutory rate. Since the beginning of the post-Great RecessionRead MoreCapital Gains Tax During The Civil War1599 Words   |  7 PagesTax began in America during the Civil War when congressed passed the Revenue Act of 1861. This was a tax on personal incomes to help pay the wages of the ongoing war. From this time different acts have been included and repealed on capital gain and taxes. From the past to current, the United States has shown the importance capital gains tax. This paper will give a brief history of how capital gains tax began in America, where the United State is now, pros and cons for arguments for and against capitalRead MoreTaxes in the News1114 Words   |  5 PagesExperiential Component – Taxes in the News On Tuesday, November 6, 2012 one of the most crucial presidential elections will take place in our history. The candidates for this upcoming election are as follows: democrat party, current President Barack Obama (president) and Joe Biden (vice); republican party, Mitt Romney (president) and Paul Ryan (vice president); independent/ 3rd party candidates are Virgil Goode, Gary Johnson, and Jill Stein. As the final hours of the most anticipated electionRead MoreLucent Technologies Deferred Taxation1610 Words   |  7 PagesExecutive Summary This memorandum is intended to communicate the deferred tax issues of Lucent Technologies Inc. on the basis of analysis of the veracity of the situation according to the reporting framework’s guidelines to anticipate unfavorable implications that had been resulted due to poor performance of the company over the past years. The Financial Accounting Standards Board (FASB) is the recognized body for making pronouncements as Generally Accepted Accounting Principles (GAAPs) in theRead MoreSummary. Goods And Service Tax Commonly Known As Gst Has1065 Words   |  5 PagesSummary Goods and Service Tax commonly known as GST has attracted most of the small scale manufacturing companies and business people to make the tax structure of Indian Economy more comprehensive.The taxation of goods and services in India has, been characterised as a cascading and distortionary tax on production resulting in mis-allocation of resources and lower productivity and economic growth. Therefore, it is necessary to replace the existing indirect tax system by a new system which wouldRead MoreLucent Technologies Deferred Taxation1619 Words   |  7 PagesExecutive Summary This memorandum is intended to communicate the deferred tax issues of Lucent Technologies Inc. on the basis of analysis of the veracity of the situation according to the reporting framework’s guidelines to anticipate unfavorable implications that had been resulted due to poor performance of the company over the past years. The Financial Accounting Standards Board (FASB) is the recognized body for making pronouncements as Generally Accepted Accounting Principles (GAAPs) in the UnitedRead MoreClimate Warming And Its Effects On Climate Change Essay1713 Words   |  7 Pagesin our history we have pushed above our historical temperature range due to emittance of anthropogenic carbon emissions. Scientists are uncertain of how much warming humanity can tolerate before experiencing the most destructive and dangerous effects of climate change, but most believe that two degrees Celsius is a good starting point to aim for. Thus, the stated goal of many international climate dialogs, su ch as the Paris Agreements, has been to stop the planet from warming an additional two degreesRead MoreMoney Too Richer While The Poor Are Getting Poorer1618 Words   |  7 Pageswhich to contend, one of the major arguments has been, do the rich pay enough on taxes? This argument on rich paying enough in taxes has been around since the start of American history. On one side of the argument, people feel the current tax rates are at maximum levels, the â€Å"Buffet rule, which calls for a minimum tax rate of 30 percent on those who make more than $1 million a year is essentially already in effect† (Dubay 353). This argument clearly states the rich are currently paying more than enoughRead MoreThe Tax Deduction For Charitable1485 Words   |  6 PagesThe federal charitable giving tax deduction was adopted in 1917 with the goal of off setting war time tax burdens. However, now that the policy has been in effect for about one hundred years, it is possible to look at weather th ese benefits and goals have been achieved. Does the tax deduction actually stimulate charitable contribution and do the drawbacks outweigh the benefits? The purpose of this paper is to refute the argument that tax breaks increase the incentive for donating and to argue