Wigan companies join call for 50p tax ban

TWO Wigan companies have called on the Chancellor to axe the 50p tax in the forthcoming budget, as part of a national petition.

Horizontal Boring Services, in Wigan, and Positive Solutions, in Parbold, have joined more than 500 businesses in signing a letter asking George Osborne to ditch the tax.

The letter comes a week after released government figures show that income tax payments from those paying by self-assessment dropped by £509m in January 2012 compared to 2011.

Many observers attributed this to the introduction of the 50p tax as most other taxes produced higher revenues over the same period.

The letter said: “The tax, which is in effect a 58p tax after national insurance is taken into account, puts wealth creators like us in a very awkward position.

“We believe the richest should help the poorest in society. Penalising high earners through an unfair, politically-motivated tax puts populist politics before sound economics.

“The result is that the 50p tax is set to reduce government income, and damage the economy, the public services and charitable giving.”

The 50p tax affects nearly 320,000 taxpayers earning over £150,000, one per cent of the total number of taxpayers. They contribute nearly 28 per cent of the total income tax revenue raised by the Government. Visit www.scrapthetax.co.uk for more information.