SMEs support tax increases on the wealthy
May 13 2009
“Taxing the rich”
Despite the media controversy surrounding the ten per cent increase for top earners, a large proportion of SMEs agree that the wealthiest should pay more.
In a poll conducted by SmallBusiness.co.uk, 41 per cent of respondents said that top earners should pay more than the current 40 per cent rate.
This follows the Budget announcement of a 50 per cent income tax bracket for those earning above £150,000.
Simon Campbell, owner of web post company ViaPost, says: ‘In principle, I don’t have a major issue about higher-end earners paying more tax. Also, if people are earning a lot of money, they will have very good advice on how they can avoid paying extra.’
Richard Murphy has run several small businesses and now runs tax consultancy TaxReseach.org. He says: ‘To be candid, this issue is almost irrelevant to small businesses. The government is in a situation where it needs to raise more money – and I’d rather that burden be put on those with lots of money, instead of SMEs that don’t have it.
‘We’re in this position partly because of the actions of the very wealthy, so it only seems fair that the bill should settle with them.’
However, of the 740 respondents, 28 per cent said that the bracket should be kept at 40 per cent, with 25 per cent saying it should be lowered to between 0 and 20 per cent.
Akhtar Yusuf, owner of retail shop Harpers, believes the increase will be counterproductive. He says: ‘I just don’t know how the increase to 50 per cent is going to put money back into the economy, as it’s going to lead people to spending less.’