It is Obvious

Chris Rick has got altogether too much to say

You’ve got be ‘avin’ a Laffer

Posted by chrisrick13 on July 17, 2014

It is obvious: I like paying taxes

Yesterday I saw Dr. Laffer on tv.  He was all you might expect: unafraid to tell the truth, not one to look for diplomatic phrasing.  He talked about Laffer curves and some variants on them.

I am amused.  The Labour party put the higher rate of tax up when in power.  Why did they do that?  The effect was to reduce the amount of tax collected.  This meant less to distribute to the people with lower income.  Then when the Coalition drops the rate and has more money for those with lower income (and significant others) the Labour party complains.

What they want to say is that they want the richer people to suffer.  It is spite, dogma, and hate.  I really don’t understand.  Perhaps it is the paradox that the only way that the Labour party can benefit the lower paid is to let the higher earners earn more which is something they can’t do.

High earners either don’t bother to pay or go somewhere else in the face of higher taxation.  Come on down Dr Laffer. Lower earners aren’t taxed anyway.  Actually they are because they pay NIC.

What does that leave?  You and me.  All we can do is take the taxation hit when it is delivered.  Lenin said that you had to grind the middle classes between the twin stones of taxation and inflation.  Do you feel ground?  Lots of  taxes, inflation (well hidden) and the bonus of dropping income.

Still, if we are to compete with 3rd world countries then we have to become 3rd world.  We are getting there.

It is obvious: I like paying taxes on increases in income


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