"Cast_Iron" wrote in message
...

"Greg Hennessy" wrote in message
...
On Sun, 21 Dec 2003 09:11:09 +0000 (UTC), "Cast_Iron"
wrote:


But if you reduce the tax burden surely you encourage enterprise,
which
moves more money around the economy and thus you still get your tax.
I
am
not an economist, but AFAIK there are still arguments about high vs
low
tax
. The rich will always provide you with more revenue per capita as
they're
spending and earning more cash.

That was Thatcher's theory, it didn't work.


Oh really ? That explains why the tax take increased by nearly 50% when
the
60% band was abolished.

It also explains why the top 10% of tax payers are now paying close to
40%
of the overall take compared to just over 20% at the height of so
socially
equitable rates of 98%.



But they don't spend more cash. Everyone has certain needs, once those
needs
are met their surplus cash sits in the bank or wherever they choose to put
it.

but that somewhere can include
direct investment in new business
investment in venture capital orgs
investment in banks, building socieites and other financial services
providers
all of which has a varying effect on job and wealth creation


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