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The top rate of tax has been cut for high earners - and corks are popping in the Square Mile, finds Owen Jones
Of all the arguments that George Osborne could present to the House of Commons in favour of reducing the 50p tax band, public opinion was not one of them. A recent poll for The Independent revealed that the vast majority of Britons across the social scale had wanted it to remain in place. Even most Conservative voters backed the 50p tax, which was introduced at the fag end of Gordon Brown's government.
In the City yesterday, there was relief and jubilation among high earners. Liz Green, 39, who works in financial insurance and pays the 50p tax, summed up the mood in the Square Mile as "Delighted!" and said they would "all be out in the wine bars celebrating".
John Gully agreed that champagne would be flowing in the Square Mile. "I think there needs to be a levelling out of tax," he said. Like many other financial workers, he felt this was a big step in the right direction. Sue Brown, 47, who works in insurance, added: "It's about treating everybody fairer."
Other City professionals hinged their arguments on the alleged failure of the tax to generate revenue and its impact on entrepreneurship. Christian James, 44, a banker, said the news was "fantastic". "The higher rate doesn't create any higher revenues, and wealth creators are working to create jobs. We...