Cutting higher rate of income tax will raise revenue, report claims

New research claims reducing the higher rate of income tax in Wales would raise additional revenue by attracting high earners, the BBC reports.

The report, by Cardiff Business School, said cutting the higher rate from 40% to 30% would bring in about £500m extra a year after 10 years.

Meanwhile Ireland will consider lower income tax rates to try and lure highly-skilled graduates studying abroad back home.

The so-called emigrants’ tax would see doctors, bankers and techies return home from Sydney, New York and Vancouver to pay an effective tax rate of just 30 per cent, compared with a rate of as much as 55 per cent for self-employed people working in Ireland.

The lower tax rate has been proposed by Minister for Jobs, Enterprise and Innovation Mary Mitchell O’Connor, according to The Irish Times.