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Re: Brexit Development(s) Discussion
Quote:
Originally Posted by OLD BOY
Ask the Chancellor of the Exchequer what happens to government income when you reduce high levels of taxation.
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You posited the proposition, you provide the proof - Sajid and I aren’t on the same forum... 
However, to counterpoint your proposition
https://www.latimes.com/business/sto...ment-imf-finds
Quote:
The Trump administration’s tax cuts have had little direct impact on business investment decisions, according to an analysis by the International Monetary Fund, which runs contrary to the White House’s portrayal of lower corporate rates as a boon for capital spending.
Almost all growth in business investment since 2017 can be attributed to private-sector expectations that strong sales growth will continue — in part because of the personal income tax cuts that boosted demand — rather than the tax incentive for companies, IMF economists Emanuel Kopp, Daniel Leigh and Suchanan Tambunlertchai said in a blog post Thursday. They cited the findings of their recent study, which was also incorporated into the institution’s latest report on the U.S. economy in June.
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Personal tax cuts for the lower paid boost business, as these people spend it on consumables (mainly), whilst Corporate tax cuts recently have been used for share buy-back or to increase reserves, rather than investment in the business.
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Last edited by Hugh; 28-10-2019 at 11:25.
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