Yep, it’s not going to stop the hyper rich still doing all they can to avoid paying tax where possible and the timing when most are struggling is amazing. It is not going to coax those on that rate to do anything dramatic to help the economy.I have to be honest here - I cannot see why on earth the top rate has been lowered to 40% from 45%. In of itself it's not a costly act as that rate applies to a small minority of taxpayers but as a gesture it seems highly provocative in times of need when people are struggling. It's almost political suicide, well probably is. So take Denise Coates, owner of Bet365. Her salary was over £300m last year (this is not as bad as it sounds as it's a privately-owned business and with a few phone calls to an accountant she could pay 19% as opposed to the full income tax she opts to pay) so 45% of that is £135 million for the treasury. Off of one person. Assuming equivalence this financial year, she will pay £120m. So £15m extra in her pocket, she clearly doesn't want or need. OK, an extreme example but it indicates the pointlessness both financially and politically.
If they wanted to do tax cuts not sure why they didn’t just leave it at reversing the NI and then maybe raise the level at which you start to pay tax. Keep it at 20p but up the thresholds. Would think that will benefit a majority of the population with more of a focus on those at the lower end of the pay scale.
Then possibly go about the benefits system but god knows how you even start doing that in a fair manner. Now that would cost a fair few quid to manage.