Should the UK government restore the 50% additional rate of income tax Essay - 4

Should the UK government restore the 50% additional rate of income tax - Essay Example From a general perspective, one can easily identify the motives of the UK government in terms of pumping out fund flow from the economy. Observing with an economic perspective, the tax hike initiative of the UK government can be categorized as a major deterrent factor that has slowed down the pace of functionality of this nation’s economy by a considerable extent (Young & Saltiel, 2011). UK citizens, in the present market economic scenario, are literally forced towards paying high rates of taxes whereas the lower income groups are made to pay marginal amounts. Considering all these aspects, the discussion will majorly focus towards answering the currently rising question regarding whether the UK government should restore the 50 per cent additional hike of income tax rates. Maintaining correspondence, the details regarding these aspects have been elaborated in the underneath sections. As mentioned above, the objective of this paper is to analyse the impacts of income tax hike on the overall trade practices and economic pace of development of the UK. Based on the findings generated thereupon, appropriate conclusions will be made constructed as to whether the UK government should bring down its present income tax levels to 50% as previous. In contemporary macro-economic concepts, taxation is deemed as one of the fundamental tenets that holds significant influence on the stability and performance of any nation. It operates as a basic mechanism in the financial system of a country. The history behind imposing an additional 50% on the existing income tax rates can directly be linked with the hollow and un-rational mentality of the coalition government. The coalition government intended to impose a higher level of tax burden upon the richer income groups with the intention of attaining better revenue inflow along with stability in the overall wealth distribution process within