I noted in late February that, quelle surprise, Britain’s 50 percent top income-tax rate had failed to bring in as much money as expected — in fact, falling short by two-thirds. In his budget this morning, Chancellor of the Exchequer George Osborne, called the 50 percent rate “uncompetitive,” noted that it raised “next to nothing,” and announced that it would be reduced to 45 percent as of April next year. Osborne also announced an unexpected drop in the corporate-tax rate: It will drop from 25 percent to 24 percent next month, and then to 22 percent by 2014, a move the chancellor hailed as “an advertisement for investment and jobs in Britain.”
At the bottom end of the scale, the income-tax exemption will be raised from £7,475 to £9,205.