Martyn Hodson wrote:
"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


It can, but the "filter down" effect that your alluding to and Thatcher
espoused didn't happen and hasn't happened yet to any significant degree.