Higher Rate of Income Tax

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Higher Rate of Income Tax

In progressive taxation, a tax rate above another rate. In most cases, the higher rate of income tax only applies to income over a defined level. For example, if one is taxed 10% on all income under $15,000 and 20% on all income over $15,000, 20% is the higher rate of income tax.
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Reimposing a higher income tax rate on the wealthiest should be an early priority for an Ed Miliband Labour Government.
Also, heirs will receive a full step-up in basis upon the death of the surviving spouse, which is even more important now in a higher income tax rate environment.
O'Day, D-West Boylston, who has sought to raise income taxes for the past two years to provide more funds for education and needy families, said a higher income tax rate with exemptions that protect lower income earners from steep hikes, is less regressive than the sales tax.
There were a number of positives: * A reduction in corporation tax rate to 24% from April 2012 (originally expected 25%) and further reduction to 23% then 22% in subsequent two years; * a reduction in higher income tax rate from 50% to 45% from April 2013 - the most concrete signal yet that the 50% rate is indeed a temporary necessity; * for those who have spent their working lives building their business and are now looking to save for retirement, no further tinkering with pensions reliefs; and * a particular win for those companies who can use the enterprise management incentive (EMI) - an increase in the limit per individual to pounds 250,000 (subject to EU state aid approval) and a proposed extension of entrepreneurs' relief to shares acquired through EMI.
The big tax change looming on the horizon for those who earn more than pounds 150,000 per annum is the new higher income tax rate of 50%, announced by the Chancellor Alistair Darling in the 2009 Budget.
The Government has already announced protection for homeowners, investments in public infrastructure and increased spending, a cut in VAT and a new 45% higher income tax rate.
He added: "Where the cost per head is say pounds 175, an employee paying tax at the higher income tax rate of 40pc could face a tax bill of pounds 70 for the privilege of enjoying the firm's hospitality .
Since many American households earn less than $450,000 a year, most will likely not be impacted by the higher income tax rate for high wage earners.
There will be a Capital Gains Tax hike for the comfortably off - and more people will end up paying the 40p higher income tax rate.
3% operating deficit in 2008, benefiting from a partial year collection of the higher income tax rate.
After taking into account a higher income tax rate, Consolidated Net Income of TWD 86,290,000 (US $2,978,136) during this year's first six month period was 80% higher than Consolidated Net Income of TWD 47,880,000 (US $1,652,487) during the first six months of 2010.
Expected changes to CGT legislation will particularly impact higher income tax rate paying investors and second home owners," says Lucian Cook, director of residential research at estate agent "Investors looking to rationalise or reorganise property portfolios, particularly those who have already seen good capital growth, could avoid a hefty tax burden by selling up before April 2011.

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