Monday, 19 March 2012
50p is not 'clobbering'
What a shame it is that if you say the same thing often enough it becomes accepted wisdom. What a pity therefore that in her excellent piece "The one-trick coalition" [Observer 18th March] the estimable Heather Stewart uses the phrase " -- exodus of wealth creating entrepreneurs" in the context of the 50p tax. Similarly on BBC Breakfast a commentator reflecting on the tax said that the LibDems will find '---other ways of clobbering the rich'. If an extra 10p on people making over five times average earnings is 'clobbering' then I speak some different version of English. Doubtless some people making £150k+ per year do create wealth but the REAL wealth creators are the micro & small businesses that I deal with. They design & sell products around the world which are manufactured by similar sized firms in Britain. They each provide employment for perhaps between 8 & 20 people. Only the merest handful of Owners/Directors within these businesses get anywhere near £150000p.a. - many think themselves lucky to be 40% taxpayers. At the other end of the scale the Financial Services Industry has shed tens of thousands of jobs, seen share prices collapse and still thinks its executives deserve seven figure remuneration.