The government could scrap the 50p top rate of income tax within the next two years - possibly replacing it with a 45p rate - according to reports.
Although the coalition has been reluctant to scrap the 50p rate, which was announced by the Labour government in 2009, it has been presented with Treasury figures suggesting a change could be made without leaving a large shortfall in public finances, the Times reports.
Treasury projections have suggested taxing those earning at least £150,000 at a rate of 45p could generate 70% of the revenue earned from the 50p rate.
A senior Conservative source told the paper: "The decision is whether to do it in 2012 or 2013. By 2014, it's too late to have an effect before the next election."
The government has been reluctant to scrap the higher rate, with polling showing its popularity and Liberal Democrats particularly keen to see it kept in place.
Downing Street described the reports as "nonsense".
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