Originally Posted by
ragingpup
Thanks for that. Certainly makes a fair case for not raising the top rate to more than 45%.
It also states that in their opinion the maximum revenue raising amount of the top income tax rate is around 40%. Yet you say that you would slash this by more than double to get a flat rate for everyone. Not even this notoriously neo-liberal policy supporting think tank are supporting your stance here? So why/how do you arrive at this figure?
I'm likewise intrigued by the suggestion that the super rich tax evaders would suddenly start paying their full whack if the tax rate was much lower? Why would they do this when you've created even more wealth for them to employ the finest accountants (and former government ministers) to evade the new rate? This seems like a huge faith in corporate humanity you have here?!
I agree that it would be a very interesting corporate experiment though. But then, come to think of it, the last 40 years have seen one corporate tax slashing 'experiment' after another with no discernible increase to the public purse; just increased profit margins... Maybe we could actually try an 'experiment' the other way round, and see what would actually happen if you increase the top rates of income and corporation tax instead??? I would have thought that 40 years of slashing top rates have led us to a pretty sorry state of public service finances thus far - maybe we should try something different?