Emma Reynolds
Main Page: Emma Reynolds (Labour - Wycombe)Department Debates - View all Emma Reynolds's debates with the HM Treasury
(12 years, 4 months ago)
Commons Chamber17. According to the Institute for Fiscal Studies, one year is not long enough to judge the effectiveness of the 50p tax rate. According to HMRC, the taxable income elasticity is highly uncertain. Therefore, will the Minister admit that his decision to scrap the 50p tax rate was ideological, rather than based on some flimsy evidence that does not actually exist?
It is not flimsy evidence; it is evidence that shows two different models. It is consistent with the academic literature in this area, and it is supported as a central and reasonable estimate by Robert Chote, head of the Office for Budget Responsibility and former head of the IFS.