Unsurprisingly the government is finally waking up to the fact that its 50% rate of tax will not reap the revenues that it had hoped for.
Lord Myners, the City Minister, said that the Treasury had "significantly reduced" its estimate of the revenue (originally set at £1.1BN for 2012 and £2.5BN).
Rather lamely he belated that:
"We still believe it will be beneficial."
Hardly inspiring is it?
Why do it then?
It has nothing to do with economics, but is a political ploy.
The only surprise is that the government has taken this long to wake up to the fact that people are not prepared to pay it.