The Greens have announced plans to hit the highest earners with a 60 percent rate of tax, following a slew of tax reform proposals by the Tories and Labour.
Under the scheme those earning more than £150,000 a year would have to cough up 60p on every £1 over that sum, 15p more than the current top tax rate, which stands at 45 percent.
Commenting on the change Natalie Bennett, leader of the Greens, said: “For too long now the economy in this country has worked for those at the top, while failing everyone else.
“The 60p tax will raise money to fund crucial public services, contributing towards the reversal of the failed policy of austerity that is making the poor, the disadvantaged and the young pay for the greed and fraud of the bankers.”
The Greens claim this change will bring in some £2bn, and also “act as a disincentive to companies paying excessively high salaries”.
According to Her Majesty’s Revenue and Customs (HMRC), about one percent of income taxpayers currently pay the top rate of tax, accounting for almost 30 percent of the country’s income tax as of January 2014.
Since last year Labour has mooted plans to bring back the 50 percent rate of tax, originally introduced by Labour prime minister Gordon Brown in April 2010, just before the last general election.
Fiscal liberals have argued such a move would discourage high-earning individuals from moving to Britain, whilst their progressive opponents believe further taxes on high-earnings would more fairly share the burden of running public services.
Bennett said: “Only the Green Party are proposing radical changes which will redistribute wealth within our economy and encourage companies to reduce the gap between their highest- and lowest-earners.”
The Greens’ move follows Labour’s plan to revoke the non-domicile or non-dom tax status, which allows those living in Britain to avoid paying tax on foreign earnings, as well as the Tories’ plan to raise the threshold at which inheritance tax is paid on homes to £1m.
