A Tory Twist on a robin hood budget

Snatching from pensioners to pay the rich, not quite the way Robin Hood redistributed wealth

Osbornes excuse for dropping the 50 p rate was "the Treasury is losing almost as much in tax avoidance from the 50 percent rate as the levy is generating." The surprise is that some people took that seriously. Similarly he claimed not to be paying the top rate himself, pants getting a bit warm now George.

The Chancellor cited a study by the U.K. tax agency that showed the government would forgo 3 billion pounds next year from lowering it, while gaining 2.9 billion pounds from people who previously chose not to pay the tax now deciding they would.

“No chancellor can justify a tax rate that damages our economy and raises next to nothing -- it’s as simple as that,” Osborne told the House of Commons yesterday. “Thanks to the other new taxes on the rich I have announced today, we’ll be getting five times more money each and every year from the wealthiest.” But the calculation “that cutting the top rate to 45 percent will only cost 100 million is particularly uncertain,” “Those who have got a taste for avoiding the 50p rate may continue to avoid the 45p rate.”

The IFS, an independent body that analyzes each budget the day after the chancellor delivers it to Parliament, said Osborne’s decision to tax pensioners more by freezing allowances is “a relatively modest tax increase on a group hitherto well sheltered from tax and benefit changes.” The move drew criticism from many of Britain’s best- selling newspapers this morning.

The Daily Mail said “Osborne Picks the Pockets of Pensioners” on its front page, while the Daily Telegraph said the “Granny Tax Hits 5 Million Pensioners.”

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