meta_pixel
Tapesearch Logo
Log in
More or Less

The 50p tax rate

More or Less

BBC

News Commentary, Science, Mathematics, News

4.63.7K Ratings

🗓️ 31 January 2014

⏱️ 28 minutes

🧾️ Download transcript

Summary

Chancellor George Osborne says a 50p tax rate does not bring in much revenue; Shadow Chancellor Ed Balls says it does. Tim Harford takes a look at why it is so hard to pin down how much tax is owed by the wealthy. Plus, have wages risen? How much does it cost to raise a child? Who do you invite to your wedding?

Transcript

Click on a timestamp to play from that location

0:00.0

Thank you for downloading more or less from the BBC. This is the version of the

0:04.1

programme first broadcast on BBC Radio 4. Here's Tim Halford.

0:09.0

Hello and welcome to more or less the programme which takes the numbers out of the cut and thrust

0:14.1

of political debate gives them a sticking plaster and kisses them better. This week is David

0:19.7

Cameron Wright that we're all better off. We question claims about how many sickness-benefit

0:25.0

applicants have been found fit to work and we tot up the cost of having children as my children

0:30.6

hoard their pocket money. I'm saving up. I don't know what for but I'm just saving up.

0:37.2

But first Shadow Chancellor Ed Balls has done some sums and come up with a plan.

0:42.8

The latest figures show that those earning over £150,000 paid almost £10bn more in tax

0:50.6

in the three years when the 50p top rate of tax was in place then when the government conducted

0:56.2

their assessment of that tax back in 2012. For the next parliament the next Labour government

1:02.9

will reverse this government's top rate tax cut so we can finish the job of getting the deficit

1:09.1

down fairly. Now this announcement has left a number of loyal listeners puzzled. Here's an email

1:16.6

from one of them Danny Banks. The government states that the decision to cut the top rate from

1:22.1

50p to 45p reduced treasury income by only £100bn. But Labour counter that. Almost £10bn more was

1:31.2

paid in tax in the three years the 50p tax rate was in use they say. I can't see why there should

1:36.9

be any argument. The treasury must know how much everyone earned after the tax cut because it

1:43.2

had to in order to take the correct amount of tax from them. Why can't the calculations be

1:48.6

rerun using the old tax levels against the new data to find out how much tax would have been

1:54.3

paid without the change? Danny if only life was so simple what you're suggesting would work

2:01.2

perfectly well if all the taxable income in the country was a sort of delicious gigantic cake

2:07.3

then all the Chancellor had to do was decide how big a slice to take but taxable income is a

...

Please login to see the full transcript.

Disclaimer: The podcast and artwork embedded on this page are from BBC, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BBC and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.

Copyright © Tapesearch 2026.