The 50p rate of income tax that was put forward by Labour for the highest earners in Britain has been badly received by the Confederation of British Industry (CBI). The organisation is describes itself as the “voice of business.” However, Roger Carr, the prospective president of the organisation has backed the initiative. He stated that, “My personal view is that when things are difficult, everybody should make a contribution. Those who can make a bigger contribution should do so. So I do not think the rate is unreasonable.”
The new rate will apply to less than 1% of Britain’s population; those who earn over £150,000 and is estimated to generate £2.4bn per year. The former chairman of the CBI, Martin Broughton had previously described the policy as “economic vandalism.” The initiative is backed by those who see it as unfair for the poor to struggle whilst the rich and privileged expect to have tax cuts.
Carr has been commended by Shadow treasury minister Christopher Leslie, who said that, “It’s actually quite a refreshing opinion and I think it probably reflects the views of the majority of the public. When you see spending cuts to so many layers of public services, in terms of tax revenue, it’s vital to have a balanced approach.”