Should the UK government restore the 50% additional rate of income tax Essay - 2

Should the UK government restore the 50% additional rate of income tax - Essay Example In the United Kingdom, the income tax rate is about 22%/. This is the rate that majority of the citizens will pay. It is worth nothing that this is termed as the marginal tax rate and will only be paid on incomes the respective tax threshold. In the United Kingdom, the threshold for tax is 5575 pounds for 07-80. Therefore, if a person earns 6225 pounds, the tax payer will be required to pay at22% which is equivalent to 1000 pounds of earning. Therefore, if a person is paid 6225 pounds, he is required to pay 100 pounds as tax. It is noted that 10% of income tax rate for income between 5226 and 7455 pounds. This was removed during the budget of 2007 as the main cut fundamental rate from 24 per cent to 22 per cent. The history of income tax first appeared in 1799. It was introduced by William Pitt: he was the younger to pay the Napoleonic wars that were initially 2d in the incomes pound over 60 pounds. Recently, in the mid of 1980s, the fundamental rate reached an income rate of 33 per cent. The United Kingdom has a marginal tax rate system. Meaning that the income tax is charged on income that is above certain levels. Therefore, it means that if a person earns 200000 pounds, the tax payer is required to pay half of the whole 200000 pounds. A tax payer is expected to pay half on the income earned above 150000 after including the personal allowance. The income tax rate in 2009 and 2010 is as shown below: The labour government of the previous regime increased the income tax rate from 40 per cent to 50 percent in the year 2010. The current UK government reduced that amount to 45 per cent starting April last year. The discussion formed the main focus in the pioneering election. Any person that receives a taxable income like pensions, interest on savings, and salaries in United Kingdom is subjected to income tax. After a personal allowance worth 9440 pounds that was due to increase to 10000 pounds from the effect of the tax rate. Currently, a