Belfast Telegraph

Thursday 10 July 2014

Think-tank backs £14bn tax breaks

The Centre for Policy Studies suggests scrapping the fifty pence tax rate

The 50p top rate should be scrapped and corporation tax cut to breathe new life into the British economy, according to a think-tank.

The Centre for Policy Studies is also calling for employers' national insurance contributions to be reduced and the tax-free personal allowance to be increased by £500.

The £14 billion package could be largely funded by holding international aid spending at 2010-11 levels, abolishing differential rates of pension tax relief for higher earners, and ending the 25% tax-free entitlement on pension lump sums.

The remaining £3.6 billion would come from abolishing "contracting out" of the state second pension, according to the CPS.

The pamphlet admits that polling by ComRes suggests the majority of people oppose abandoning the 50p rate.

However, it claims the move would enjoy significant support when combined with an increase in the personal allowance.

CPS director Tim Knox said: "Today's low growth rates threaten the coalition's ambitions to eliminate the deficit.

"Fast action is needed now. Cutting tax on enterprise will give the best boost to the economy."

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