The Laffer curve is based on the theory that if the rate of tax is reduced, then more tax is collected. In so far as it is true, it is an expression of the fact that, with the exception of a tax on the rental value of land, taxes give rise to a deadweight loss; the tax suppresses economic activity that would otherwise have taken place. This is either because locations become sub-marginal, as is...

If a tax on sugar means the people eat less sugar, then a tax on wages must mean fewer jobs and a tax on goods and services, the purchase of fewer goods and services. Yet most public revenue is paid for by taxes on wages, goods and services.Then we are worried about joblessness and failure of the economy to grow.

The costs of tax adminstration and compliance sometimes comes up. This report from the Mirlees Review (table 12.2, page 1128 ) gives figures http://www.ifs.org.uk/mirrlees… PAYE Income tax has an administration cost of 0.7% of revenue and a compliance cost of 1.3% of revenue. Non-compliance adds a further loss of 1.4%. Self-assessed income tax has an administrative cost of 4.5% of yield and...

One of our members stated in a discussion group that “Progressive income tax” causes unemployment at the bottom end and is avoided at the top. This produced the following response... In all honesty, I don’t know how you can say that progressive income tax causes unemployment at the bottom. We have discussed the matter many times on this website, but the reply given was a concise...

The tax system locks people out of work and into poverty. How does it do this? There is no need to go into too many details. Just work out these figures and you will see the size of the barrier against work.

Local Income Tax is an idea that keeps on popping up like a perennial weed. The House of Commons Communities and Local Government Committee has just produced a report called “The Balance of Power: Central and Local Government“. In the section on finance, we read… “A further solution would be to either replace or supplement council tax with a different local tax, such as...

All the FAQs answered at one in this comment by IanCb in the Guardian’s Comment is free.

Practical Politics No.70 April 1997 ELECTION ’97 We have looked back at Issue No. 26 of March 1992, written for the General Election on 9th April of that year, and we find ft in no need of change. Let it stand therefore as our manifesto this time too.