A leading centre for independent economic research has said the best evidence currently available suggests a 50p tax rate backed by Labourwill raise "little revenue" and make a "marginal contribution" to reducing the budget deficit.
Ed Miliband has dismissed the letter signed by 24 UK business leaders criticising Labour's 50p tax plan, which suggests the tax hike will threaten the recovery.
The leader of the Labour party claimed the 50p tax rate did not stop businesses investing when the higher rate was previously in place for three years (from 2010, when the Labour party created the 50% tax band for anyone earning £150,000 and above).
Ed Miliband answered questions for the first time this afternoon about his plans to re-introduce the 50p rate of income tax.
Politicians at both ends of the political spectrum need to be more honest about the true motivations behind their tax policies.
Ed Balls has said Labour would restore the 50p tax rate for those earning over £150,000 if the party wins the next election.