Flat tax rates are in the news again. The idea is that the lower the tax rates, the more revenue can be collected.
New figures produced by HMRC tell us that when the top tax rate, in 2012-2013, was 50 per cent, it raised £39.3 billion from those earning more than £150,000 a year.
In 2013-2014, when the top rate was reduced to 45 per cent, such earners paid £48.4 billion.
Source: Ian King, The Times, 28th July 2014.