According to the Chancellor his budget will raise five times more revenue from the wealthy than the cut in the top rate of income tax from 50% to 45%.
Accept that the increases in property taxation will occur at once – and the cut in the top rate of income tax (and a rise in the threshold at which the poor start paying tax) will occur in April 2013 – i.e. (at least as regards the reduction in the top rate of income tax is concerned) will not happen at all, as the political conditions in April 2013 will make a “tax cut for the rich” impossible.
So the government has got all the political heat for a “tax cut for the rich” without getting any economic benefit by actually reducing the top rate of income tax. Indeed taxation on the weathy will increase.
The Chancellor has also said that on top of his large increases in taxation on property (targeted at wealthy individuals and companies) he will “not hesitate to take retrospective action” if any individual or company is, in his judgement, not paying “enough tax”.
Also study on a general “non avoidence rule” for all taxation (not “just” property taxation) so that people who have obeyed every word of the thousands of pages of tax regulations can still have more money taken from them without any specific legal authority to do so.
However, there is a good side to the budget.
For example, there will be a small (but welcome) reduction in company taxation.
And there is now a tax allowence for video games and animation.
As the Chancellor said….
A central aim of his budget is to “keep Wallace and Gromit where they are” (if I have mispelled the title of this show I refer readers to the Chancellor, who is an expert upon it).
So that is O.K. then.