Alistair Darling's plan to implement a 45% tax on those earning £150,000 has been shot down by the Institute for Fiscal Studies as unlikely to raise revenue that will help repair public finances. In a report published today, the IFS said that revenue is likely to be reduced by this measure unless the government acts on preventing tax avoidance and overcoming ways that people can reduce their taxable income. In November's pre-budget report, the Treasury forecast said the 45% tax on those earning more than £150,000 to be introduced in April 2011, would raise £1.6bn in revenue. But the study conducted by the IFS indicates that once VAT and other indirect tax revenues is taken into account, the Treasury should only expect to see a revenue of £550m. James Browne, senior research economist at the IFS said Darling's proposals will complicate the tax system and will raise a smaller revenue compared to 'a simpler and smaller increase in tax rates across a boarder range of high -income tax payers would raise the money the Treasury is looking for more efficiently'.