2 thoughts on “The higher rate of income tax and fiscal drag”

  1. Posted 21/03/2016 at 13:30 | Permalink

    I do find it irritating when people talk about ‘tax cuts’, say to Capital Gains Tax, when what they mean is a reduction in the rates of tax. As Philip Booth says, the result may actually be to increase the small amount of revenue raised by the tax. I blame Keynes for this confusion, since in his General Theory eighty years ago he continually confused ‘wage rates’ with ‘total wages’. (My opinion is that this was not due to any intention to deceive.)

  2. Posted 23/03/2016 at 13:29 | Permalink

    If that annoys you, D.R. Myddelton, I can only imagine how you feel about references to “a tax giveaway”. You’ve got to admire the Orwellian logic, though: “By taking less money from you, I am giving away money too you.”

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