Quote:
Originally Posted by Chrysalis
incentive will always be there, the incentive been in that you pay for your own food and whatever you been taxed at the income beats the dole and been on the street.
Historical trends have a higher income tax ignition
90% top rate?
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Not comparable due to the number of tax bands and relative numbers of people paying the higher rates, along with the extra indirect taxes and higher national insurance now.
http://www.hmrc.gov.uk/stats/tax_str...1974to1990.pdf
The incentive isn't always going to be there, for many of the working poor the financial case for working is precarious enough already without taking more of their income. With increased mobility of labour it wouldn't take a huge tax increase to push large numbers of people abroad.