cutting taxes did not cause the boom- it ended it.

[toughbutfair]

Tax cuts did not solely cause the boom, and nor did they solelyend it. However, the CT rates certainly had a large impact. As for the end of the boom, take your pick fom the many factors that coincided to kick us in the nuts. There is something to be said for your pov though- taxes could have been used to curb speculation in over heated markets, and this may have helped us avoid some of our current troubles.

Are people aware that when the CT rate was about 40% in the 1990s most of the multinationals were actually paying 10% tax due to a relief known as manufacturing relief?

[seenitallb4]

Are people aware that when the CT rate was about 40% in the 1990s most of the multinationals were actually paying 10% tax due to a relief known as manufacturing relief?

People only see headline rates as reported in the papers generally. Things like Group Relief, the Capital Allowances, the R&D Credit, the Double rent allowances for leased property in the IFSC, the no withholding taxes on dividends or interest and a whole host of other measures that were implemented either before the boom or early on in the boom. There is no doubt that low taxation stimulated economic activity and had a key role to play. Some of the growth would have happened anyway due to our low costs, educated workforce EU membership, low interest rates and trade liberalization, but there is no doubt that the taxation situation accelerated and added to our boom.
I view our current difficulties as having as much to do with overspending as it has to do with having a narrow tax base.

[Mr.De-Regulation]

Not bothered listening to peoples silly posts on this. You are suppose to raise taxes in a boom, lower taxes in a recession. Thats when you have mixed economy like we.

Know if you want a stable economy, you just keep taxes a constant level that covers the cots of the basic services

[cd27]

I like the way you linked the data there, but if we are at "normal" tax levels now, what next for public services, are they good or is reform required? Also, you've still got to cut massively so spending equals "normal" tax levels.