One of the ways in which the Government is taking action to deal with the fiscal deficit is to pile pressure on higher rate tax payers to pay a greater share of income tax. Not only that, says tax expert John Woolley, but in the tax year 2011/12 it is estimated that because of the fiscal effects of an increase in the personal allowance and a disproportionate reduction in the basic rate tax band (which was designed to stop higher rate taxpayers benefitting) there will be about 750,000 more higher rate taxpayers.

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