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In 1981 President Reagan cut the top personal rate from 70% to 50%.
A total of 25% can be taken tax-free with the remainder taxed at your personal rate.
The wealthy benefit the most, because they are deducting income that would otherwise be taxed at the highest personal rate.
From April 2015, all restrictions on access to your pension pot will be removed, with the tax on withdrawing a pension fund cut to your personal rate.
A secretary earning £20,000 would pay 83p more per month since the 1p rise would wipe out the gains from the higher personal rate.
At present, unless your total income is lessthan £15,600 a year, you pay interest on your savings income at your personal rate.
Similar(37)
The average personal rating among the candidates was plus 13.
Mr Brown's personal rating has plunged even more violently.
Those with a personal rating of 1 had a rejection rate of 2.5percentnt.
Ed Miliband's personal rating will be a source of alarm for Labour, however.
The prime minister's net personal rating is -33, while the Labour leader's is -39.
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