A look into our future and past: 50% tax bracket in UK

From the Times Online:
http://bit.ly/dumuTl



People earning more than £150,000 a year will see a reduction in their take-home
pay from today as the new 50p rate of income tax comes into force at the start
of the financial year.

In addition to the new tax bracket, announced by Alistair Darling in the Budget last April, high earners will also be subject to a new 42.5 per cent tax on dividends while those people making more than £100,000 a year will have their personal allowance reduced

People earning more than £150,000 a year will see a reduction in their take-home pay from today as the new 50p rate of income tax comes into force at the start of
the financial year.

In addition to the new tax bracket, announced by Alistair Darling in the Budget last April, high earners will also be subject to a new 42.5 per cent tax on dividends while those people making more than £100,000 a year will have their personal allowance reduced


The chart below is from Wikipedia and shows the top marginal tax rate in the US since 1910. Notice the sharp spike in the 1930s and the peak in the 1940s. They remained at or above 70% until Ronald Reagan took office. He cut it down to 28% through the course of his two terms. George Bush senior was booted out of office after his famous "read my lips" pledge and subsequent raising of the top tax rate to 31%. Bill Clinton took it up to 39.6%. GWB cut it to 35%. What will Obama do? Take a wild guess.


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