Rise in Income Tax for Top Earners

Alistair darling has announced that his pre-budget report will include plans to increase Income tax for the highest earners.

Under the plans , the income tax rate will be 45% for earnings over 150, 000 pounds a year, provided labour win the next election.

These plans have broken New Labour promise of not raising the basic or top rate of income tax .

He stressed this would raise only a small amount of money needed to sort out public finances. It is esimated that this plan will raise 1.2 billion pounds.

The Taxpayers' Alliance described the move as "a totally backward step".

bUT WILL THE PLANS SCARE OFF INVESTORS??