During the Finance Bill debate last month, Richard called on the government to raise the 40% threshold at which the higher rate of income tax is paid. Richard's contribution can be watched at https://youtu.be/p1fmpkZdiFw?si=JAyxOlw4CfhGJrnb.
Summarising his arguments, Richard Fuller MP said :
Since 2010, successive Conservative governments have protected pensioners with the triple lock; raised the tax allowance on low earnings; and pushed up the minimum wage/living wage to record levels. We have made work pay and protected the most vulnerable. This is a very good thing.
There is however a hole in the direction of our overall policy of taxation of income: the threshold at which wage earners start paying the higher 40% rate of tax.
As I pointed out to the government, since 2010, in real terms, there has been a 37% decrease in the level of income at which they start paying that higher rate of tax. And that is both higher paid earners and retirees who have been thrifty and saved for their retirement in addition to their state pension.
If we want growth, we need to reward people taking economic risks; to start their own business; to offer someone a job; to spend time creating an innovative commercial idea, and that means an upper tax rate and an upper tax threshold that motivates rather than penalising people for taking those risks.
