In a letter to The Daily Telegraph the small and medium sized business owners have said that the tax rate has prevented them from expanding their business and taking on more staff; adding that the levy is reducing government incomes and damaging the economy, rather than assisting its recovery.
Within the letter, the business owners not only accuse the Chancellor, George Osborne of “putting populist politics before sound economics” but they are also calling for the levy to be scrapped in next months budget.
The 537 business owners who signed the latter say: “Given the current state of the UK economy, we urge the Chancellor to urgently consider scrapping the top rate of tax in his forthcoming budget.
“The tax, which is in effect a fifty-eight pence tax after national insurance is taken into account, puts wealth creators like us in a very awkward position, penalising high earners through an unfair, politically motivated tax puts populist politics before sound economics.
“The result is that the fifty pence tax is set to reduce government income, and damage the economy, the public services and charitable giving.”
Despite the letter from the business owners, the Shadow Chief Secretary to the Treasury, Rachel Reeves, has claimed that now is not the time to do away with the fifty-pence rate, saying: “When millions of families and pensioners on middle and low incomes are being squeezed by the VAT rise and cuts to tax credits, cutting taxes only for the richest 1% cannot be the right priority now.
“But these business owners are right to call on the government to take action to stimulate growth and jobs in our economy.”
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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