Mark Littlewood, director general at the Institute of Economic Affairs, echoed that view, saying it would be a "disaster for both enterprise and economic growth". But Mr Balls said the three years where the tax was imposed (after increasing the top rate from 40p to 50p) raised almost £10bn more than the assessment suggested. It allows our most engaged readers to debate the big issues, share their own experiences, discuss real-world solutions, and more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sked whether the Chancellor regarded the 45p rate - like the 50p rate - as "temporary", Treasury sources would say only: "We keep all tax rates under review.". At present income of up to £32,010 is taxed at the "basic rate" of 20%, while a "higher rate" applies to income from £32,011 to £150,000. Although Mr Osborne insisted there would be no cash loss to pensioners, Treasury sources said existing pensioners would be, on average, £63 a year worse off while new pensioners would lose out to the tune of £197 a year. However, the heavily trailed tax changes threatened to be overshadowed by the row over the phasing out of pensioners' allowances. After a "personal allowance" of £9,440 (due to rise to £10,000 from April) people pay according to "bands" of income. Find your bookmarks in your Independent Premium section, under my profile. Scottish taxpayers paying slightly higher rates of income tax (21%, 41% or 46%) than elsewhere in the UK also need to claim their extra tax through their tax … The current coalition government kept the additional rate system, but reduced the amount to 45p from last April. Please enable Cookies and reload the page. The existing Open Comments threads will continue to exist for those who do not subscribe to Independent Premium. But around 300,000 people will be drawn into paying income tax at 40% from 2013/14 by a reduction in the higher rate threshold to £41,450. On coming to power in 1979, Margaret Thatcher's government reduced the top rate of income tax from 83% to 60%. The most insightful comments on all subjects will be published daily in dedicated articles. You can also choose to be emailed when someone replies to your comment. And Labour peer Lord Sugar, businessman and star of TV show the Apprentice, has said reducing the tax was a "clever move". The Treasury acknowledged that 4.5 million pensioners will lose out as a result of the decision to phase out their age-related allowances. But in April 2010 Labour's "additional rate" came into force, meaning anyone earning more than £150,000 a year had to pay 50p in every pound of income over that amount.