The President 's Argument And The Labor Party 's Proposal By Extension

2342 Words Dec 4th, 2014 10 Pages
Introduction Debate surrounding the controversial 50 pence additional rate of income tax for high income earners hit the limelight again at the beginning of this year following Shadow Chancellor ED Beals’ announcement that the Labor Party intended to restore the same if it was elected to power in the 2015 general elections. Addressing journalists in January, the Shadow Chancellor argued that such a move would see the economy raise approximately £10 billion over a period of three years, which would essentially imply that i) the level of national debt would be reduced, and ii) disparities in income and wealth would be minimized through a fully-progressive tax system structured to ensure that “those with the broadest shoulders bear a fairer share of the burden” (Merrick, 2014). The Chancellor’s argument and the Labor Party’s proposal by extension have, however, received their fair share of criticism from several business and political leaders, among them Prime Minister David Cameron, who argued that any such policy would slow down the process of economic recovery, and would lead to higher levels of public debt in the long-term. One may then wonder - what exactly is sprawling all this debate about the top rate of income tax among political heavyweights; or rather, does the 5p rate of income tax really have as much merit as its proponents claim, or is this just another political center-ground seen by players as a way to appeal to the electorate? This text interacts with the…
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