All over the news today was the letter from ’20 high-profile economists’ stating that the 50p tax rate on earnings over £150,000. In their letter the economists said that:
…the tax rate makes is making the UK “less competitive internationally, and making us less attractive as a destination for both foreign investment and talented workers”.
This line of argument will be depressingly familiar to many readers. Those who know about Simpol will be especially unsurprised by this. Yet again the spectre of ‘uncompetitiveness’ in the global market place is raised in an attempt to force out a progressive policy.
The sad truth is that, whether they are right or whether they are simply scaremongering for political reasons, the fear of losing competitive edge is usually enough to drive the politicians to capitulate. In fact the article quotes the chancellor as saying:
“I’ve said with the 50p rate I don’t see that as a lasting tax rate for Britain because it’s very uncompetitive internationally.”
How many more times must we hear this argument. For how much longer must we cower under the political bedclothes hiding from this ever present spectre?
How long before we realise and accept that simultaneous policy is the only way to overcome this – our very own ghost busting kit?!