There is no way you can simply cut spending if you are a socialist country, the leeches will revolt...guess what that means. The top tax rate of 150K pounds is equivalent to about $225K here in the states. You have to realize that the cost of living in the UK is much higher though, a friend of mine recently paid over $1000 psf for a flat that is 1880s vintage. So $225K isn't going to go as far as you would think. These people are being taxed to death.
Govt hikes top income tax rate to 50%
Britain will increase its top rate of income tax to a higher than expected ...
British Economy Will Shrink This Year at Fastest Rate Since 1945
The government will increase its top rate of income tax to a higher than expected 50 percent from next year, Chancellor Alistair Darling said on Wednesday as he delivered the government's annual budget.
The tax band had originally been due to rise to 45 percent from 40 percent in April 2011 as Britain seeks to claw back lost tax revenue caused by a deep recession.
The 50-percent rate will apply to any income above 150,000 pounds.
"In November, I announced a new rate of income tax of 45 percent on incomes above 150,000 pounds -- the top one percent of taxpayers," Darling said in his budget speech.
"In order to help pay for additional support for people now, I have decided that the new rate will be 50 percent and will come in from next April -- a year earlier."