Government must consider tax revenue, not tax rate

Mark Littlewood appears on BBC R5

Mark Littlewood appeared on BBC Radio 5 Live to discuss tax and welfare reforms.

Commenting on the upper tax rate cut from 50p to 45p, Mr Littlewood stated that the government should be asking itself what it can do to maximise the amount of money it gets from the very affluent. The 50p rate brought in approximately only £3bn to the Treasury and we are unaware exactly of the exact disincentive effect of such a high tax rate. Mr Littlewood argued that by cutting the rate to 45p, the government will in fact receive more in tax revenue than it did previously.

Regarding welfare reform, Mr Littlewood stated that it is vital for all of those in work to have the right incentives. For attempting to tackle the problem that some on welfare are better off than if they were in employment, the government should be applauded.

Listen to the full clip here. Segment begins at 9.53.

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