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.
Business bosses have criticised Labour's 50p tax rate plan warning that the policy would threaten the recovery and cost jobs.
In a letter published in the Telegraph, the heads of 24 of Britain’s most successful companies warn that the plan would "have the effect of discouraging business investment in the UK”.
They add that such a move would be a “backward step” that would quickly lead to job losses.
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.