The frenzy of government tax increases could take Ireland back to the punitive tax rates of the 1980s. The result is likely to no increase in actual tax take and reduced economic growth. An article in today's Times of London provides many historic examples of how lower tax rates increased tax takes It's GCSE economics: high taxes don't work | Eamonn Butler - Times Online
Patslatt, the leftie socialists and unions won't hear of this , their mantra is marxist envy"From each according to his abilities, to each according to his needs".Tax the bollix out of everybody and give it to a bunch of voting buying ****************************************ter altruistic,sophists called government.
They will keep taxing and taxing because for politicians they are basically immune from any tax increases,they shaft expenses or slyly find new areas without the public noticing and start shafting these areas.
A champion of the people emerges with the age-old and appealing promise of "something for nothing" - to be financed through every-increasing taxes. Supply and demand are thrown out of gear - the overhead goes up; the effective use of human energy goes down; the standard of living is lowered because money cannot buy wealth that is not produced.
WEAVER, HENRY GRADY,
Nail on head.Originally Posted by atlantic
It is hypocritical for feminists and intellectuals to enjoy the pleasures and conveniences of capitalism while sneering at it.-Camille Paglia
I dont think anyone is calling for a situation where the govt taxes the 'bollix' out of the people.
The fact remains, the majority of the 'people' dont pay taxes and those that do, pay far too little.
While the people seem to find this situation acceptable(the same people accepted Bertie's reckless boom policies), I find it saddening that we are walking ourselves into a stateless society. With the tax burden falling daily and looks like it will be under 20%, I dont think calling for higher taxes as socialist. I consider it, saving the state.
The fall in taxes mirrors the fall in the economy.
What do you mean those that do pay tax, pay to little ,a load of bollix.The country is in this state because we voted in a bunch of vote buying,lying, selfish, economic morons .This country is taxed to the hilt with vat, stealth taxes etc.I want to see this government squirm and the less they get the better ,it might force them in to doing the right thing and start cutting the ******************** out of public spending.It cost 25 billion to run this country 9 years ago now it's nearly sixty billion,and the clowns in government will be lucky to bring in 29 billion.You can tax people as much as you like its not going to make much of a dent.
A champion of the people emerges with the age-old and appealing promise of "something for nothing" - to be financed through every-increasing taxes. Supply and demand are thrown out of gear - the overhead goes up; the effective use of human energy goes down; the standard of living is lowered because money cannot buy wealth that is not produced.
WEAVER, HENRY GRADY,
I made this precise point - The Law of Diminishing Returns - in a thread some weeks ago and was roundly shouted down by the usual leftie suspects.
A lot these bleedin heart liberals you are paying their wages,they would love to see the high rate of income tax @75% and a wealth tax of 90% all for the common good (my arse)equality and fairness.
A champion of the people emerges with the age-old and appealing promise of "something for nothing" - to be financed through every-increasing taxes. Supply and demand are thrown out of gear - the overhead goes up; the effective use of human energy goes down; the standard of living is lowered because money cannot buy wealth that is not produced.
WEAVER, HENRY GRADY,
A bit extreme in your comments but the general gist of what you say is true.
Reduced rates increase the tax take only if:
(a) the reduced tax generates more taxable activity or taxable income, so that the government ends up getting a smaller percentage of a bigger pot
or
(b) the reduced tax rate reduces the incentive to avoid or evade the tax, so taxpayers try less hard to manage their taxable income
or
(c) reducing some key rate strategically generates taxes in other areas
Our low corporation tax rates resulted in a higher tax take because of factor (a) - more inward investment, and so a bigger pool of taxable income generally and factor (c) - more company activity meant more employment which meant more income tax, VAT etc.
Just reducing taxes unstrategically doesn't magically increase the take. You need a progressive system, you need people paying a reasonable amount of tax. Still though, if the rates tip too high you depress spending and lose tax take overall because of factor (c), and you incentivise avoidance, which reduces your take again.
Which is a convoluted way of saying the inverse relation between rates and take is not magic, and needs to be managed, and you also need fairness in the system
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