Financial Times FT.com

Targeting rich will not work, says study

By Vanessa Houlder

Published: April 20 2008 22:20 | Last updated: April 21 2008 07:44

Increasing the rate of tax paid by the rich would be unlikely to raise extra revenue, according to research published by an influential think-tank on Monday.

The Institute for Fiscal Studies said it had “new, albeit tentative” evidence that ratcheting up income tax rates for those earning more than £100,000 was likely to be counter-productive, based on the evidence of the past 40 years.

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