Tax increase would have little impact on highest earners, says UK think tank

UK policymakers need to be “up front” about the uncertainty of the impact of changes in income tax rates, said the Institute of Fiscal Studies, which argues that any additional revenue from Labour’s proposed 50 percent rate would be paid predominantly by those with incomes between £80,000 and £200,000.

In a briefing note published on August 22, the IFS said that some of the uncertainty reflects significant “forestalling” undertaken by taxpayers between March 2009, when an increase to 50 percent for taxable income over £150,000 was announced, and the implementation of that change in April 2010. Read more:

My news story for Tax Analysts, August 23 (paywall)