Tax Rebates & Refunds

Welsh Conservatives would like to cut tax for high earners

February 28, 2013
Posted in Income Tax — Written by Chris

The leader of the Conservative group in Wales has said that if tax powers were devolved to the Welsh Assembly, the party would like to give high earners a temporary cut in income tax.

In a recent speech in Cardiff, Andrew RT Davies has said that he would like to cut the 40p tax rate, currently charged for those earning more than £34,000 a year, for high earners in Wales. Mr Davies believes that this would encourage enterprise. He said:

“If some elements of income tax are devolved, it would in my view be necessary to look at a period of reduced taxation for the entrepreneurial, whether private or public sector – those paying the 40% tax rate.

“This would not only send out a strong sign to business in competing regions of the UK, but it would spell out that Wales is well and truly open for business.”

However, considering that just a 1p cut in the 40p rate would cost the economy between £12 million and £16 million every year, it would be a very expensive move. The Welsh government has criticised the Conservatives for not coming up with a plan to pay for the tax cut, which would be the equivalent of sending out millions of pounds in tax rebates.

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