Quote:
Originally Posted by Hugh
Do you mean the recent UK history where higher tax rate payers took the bonuses early to avoid the introduction of 50%higher rate, thus spiking the revenue that year and lowering it the following year? (the tax revenue went back up the following years...).
Some people "know" the Earth is flat - doesn’t make it true...
|
If the lowest possible rate (0%) maximised total tax payments and the highest possible rate (100%) minimised them then governments would set them all at 0%.
The truth is that the rate that maximises total tax payments is somewhere between 0% and 100%. But to continuously cut taxes won't increase the tax return as logic suggests you will end up charging no tax whatsover!