Should the UK government restore the 50% additional rate of income tax Essay

Should the UK government restore the 50% additional rate of income tax - Essay Example Great Britain (2010) noted that an income tax of 20% is automatically charged on savings interest while those who are married and one of the spouses was born before 6 April 1935 are able to claim a Married Couple’s Allowance hence reducing the tax bill. The UK government is fair because those who are blind are able to claim the Blind Person’s Allowance. This paper is going to give opinions on if the UK government should restore the 50% additional rate of income tax. First, the paper will provide an explanation of the recent history of the additional rate of the income tax and then discuss arguments in favor of and against the restored rate of 50%. Great Britain (2010) noted that in 2009, Alistair Darling the then Chancellor announced that there would be tax increases in order to contribute over six billion pounds by the year 2012. The reason behind this was ensure that the economic future of the country was secured and to provide assistance for citizens when they require it most. The changes incorporated an increase in the indirect taxes rates for instance duties on alcohol and road fuel for that current year, variations in income tax from the month of April 2010 that included a new 50% rate on all incomes above 150,000 pounds. Great Britain (2010) stated that the new additional 50% rate brought about many feedbacks about the Budget, as individuals viewed it as a valuable change in the Labor government’s approach to taxing those who are wealthy in the society. There were many debates among citizens wondering if the changes would enable the government to get as much as they had anticipated. For instance, 1.3 billion pou nds in November 2010 rose to 3.05 billion pounds in December 2011. Great Britain (2010) noted that UK consisted of 31.3 million-taxpayer population but according to the revenue and customs estimate, only 236,000 citizens were entitled to pay the 50% rate in November 2010. Great Britain (2010) noted that the Liberal Democrat