The Entrepreneur and the Accountant

Anyone earning a large salary will already be contributing more in tax than someone earning considerably less. Simple mathematics, and that's without adding ten percent on top, which of course increases the high earners tax band to half of what is earned. Not forgetting the scrapping of the tax allowance (the tax free bit) and the National Insurance contribution. That leaves you with...well I'll leave you to do the sums.

My own view has always been that you've got to earn it to pay it. That works at forty percent, but fifty percent? Why the Government prefers to alienate top earners is beyond me. A small number of the overall population, one percent is a mere mole hill set against the gigantic mountain of debt that lay before us. Surely a smaller adjustment of the tax band threshold for us all would have had a more dramatic effect on the problem.

I think that picking out the very people that already make the biggest contribution per capita is another clear example of going for the easy cash cow option.

We've evolved into a nation where entrepreneurialism is almost a qualification, yet we're governed by Old Labour which in my view has degenerated and is now more of a throw back to the 1970's. Not alot of entrepreneurialism in the 70's.

The message to aspiring young entrepreneurs will almost certainly be that if you plan on becoming a top achiever then you're going to be penalised for your efforts.

I just hope Alistair Darling's debt repayment plan can withstand the fact that our current record low interest rates will of course go back up. I'm not sure he's factored that into his forecast.

On an individual level, this however is why accountants were created. I'm sure they'll be earning their money in the coming months and years!