Lies, damned lies, and statistics at the Budget and why Osborne decided to rush the 45p rate in

Ever since the 50p tax rate was introduced the Tories have been obsessed with trying to lower it.  Digging a bit deeper it becomes clear why George Osborne chose this year's budget to remove it, as this would be the only year when the statistics would support his case for scrapping it.

He states in the budget that the rate only raised a third of the expected £1bn originally expected. (BBC News).  When you look into this there is a very clear reason why this is the case.  The HMRC report into The Exchequer effect of the 50 per cent additional rate of income tax states:

The analysis shows that there was a considerable behavioural response to the rate change, including a substantial amount of forestalling: around £16 billion to £18 billion of income is estimated to have been brought forward to 2009-10 to avoid the introduction of the additional rate of tax.  (Page 2 of the report).

The true effectiveness of the 50p rate will not show until the end of the 2011/12 tax year next month, as this will be the first year when it will not have been possible to move income into a year with a lower rate.

And how is he paying for the scheme.  He is lowering the 40p tax rate to £41,450, attacking child credits and pensions.

There is no getting around the fact that this budget was a budget by the rich for the rich,

Update

Someone has set up a petition on the government website calling for the 50p tax rate to be re-introduced.  Sign here http://epetitions.direct.gov.uk/petitions/31663