Parties are Clashing on Top Tax Rate for Election 2015
Both parties are clashing on top tax rate, and Labour recently called on the Conservative Party to promise not to lower the top income tax rate if it wins the election. George Osborne responded by saying he had no plans to do so, but also refused to completely rule the move out.
In 2013 the highest income tax rate was reduced from 50% to 45%. by the coalition government, and Ed Balls criticised Osborne’s refusal to rule out any further cuts.
When challenged, the chancellor replied that he wants to increase the tax-free personal allowance up to £12,500, giving people who are full-time on a minimum wage the chance to not pay income tax, and making millions of people better off.
When Prime Minister David Cameron was later asked if he would cut the top tax rate, he replied that he would rather take another million people out of income tax altogether, cutting tax for 30 million people.