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Old 7th Jun 2017, 15:40
  #130 (permalink)  
ExGrunt
 
Join Date: Mar 2003
Location: England
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@Arc
The real solution is a higher rate of income tax

Except there is a wealth of evidence that higher rates of tax lead to reduced tax take (ie the actual money that comes in).


Between 1974 and 1979 the top rate of tax was 98% - It is no coincidence that that coincided with the government being so short of money that it had to get a bail out from the IMF. And my recollection was that public services weren't that great.


Counter intuitive as it seems the best way to increase tax take is to reduce tax rates. Less of more economic activity pretty much always turns out to be greater than more of less economic activity.


EG
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