Lowering taxes actually increases tax revenue (11Nov10)

[Spjungen]

Every economy in the West needs to do what Hong Kong did.

Sweden's already doing it, and are well on their way.

[anon2999]

Triple post but just want to note that this is exactly what the Tea Party in the US is all about. It's not about a birth certificate, it's about government being too large and taxes being too high and both of those factors hurting the economy.

[anon2999]

We've known all of this for decades. What party in the UK is advocating for this? Sure as fuck not the Conservatives.

[pdynamics1]

Everyone thinks China will overtake the U.S. It won't because they lack INNOVATION. My co-workers who worked there during the Beijing 2008 Olympics also mentioned their education system is in need of serious reform. They are stuck in the manufacturing ghetto and seem to be content there because it brings in alot of money.

The top universities in the world are in the West and most of the innovation still comes from the United States and Japan

[bonfirejovi]

Both sides are wrong, it is about achieving a balance... if they are too low then you cannot get maximum revenue and if they are too high then it doesn't work either.

[Taramriel]

Beautiful video.

[tdp1909]

Thing that gets me about our tax system is how (allegedly) our of 360 odd taxes, 180 don't make money. The UK is loooong overdue for a tax reform - one tax & that's it.

[Sres1]

@tdp1909 lets hope the lifting the poorest out of the tax loop helps, I'm a high earner and I agree with lowering taxes for the least well off.

[jasonhellawell]

problem.....england has no industry! so we have nothing to sell.

Bet frauden brown disagrees with reducing tax tho, labour love to increase tax's

[SirOneoneselfandone]

You are right we have twats for politicians, its not even maths or economics its common sense

[crackmonster99]

The influence tax cuts have on the economy depends on when they occur. If you cut taxes during relative good times you'll probably still take in the same amount of revenue and it'll seem like the tax cuts are responsible for it but it's not. If you cut them in bad times it won't do anything because investers will still be risk averse. Cutting taxes creates deficits and is the basis for society living on credit because they still have to be paid for and the rich will get the most out of them.

[globalbankfraud]

@crackmonster99 I don't think you really know what you're talking about. Cutting taxes is a good thing what ever the economic conditions. Lower taxes more tax revenue, very simple; Kennedy realised this too. If you raise taxes during a recession you won't get more revenue & what revenue you have won't pay off national debts. Why do you think the BoE keeps monetizing our debt? Our problem is we're not cutting all waste from the public sector, and our money is created by private banks.

[crackmonster99]

@globalbankfraud I know exactly what I'm talking about in the US for the last 30 years all the government has done is lower taxes and cut regulation. The result is the .com bubble and the housing bubble and the 2 recessions. Tax cuts for poor people has a marginal effect on the economy because they the spend it as soon as they get it but cutting tax on the rich doesn't work because they don't use the extra money they save it, put it in banks that don't lend it out so it just sits there.

[globalbankfraud]

@crackmonster99 The problem as a whole is more complex than just taxation but it is true that lower taxes generally lead to higher tax revenue. That is what your Kennedy did. The bubble phenomena is connected to the financial system and fractional reserve banking (FRB). FRB causes an ever increasing money supply & corresponding debt. If you look at your $ it's lost something like 90% of it's value in the last 90 years. Kennedy started to tackle that one too but got shot.

[crackmonster99]

@globalbankfraud Cutting taxes leads to deficits because tax cuts don't pay for themselves. It's the equivalent of creating a new social program. Reagan cut taxes so much in 1982 that he had to raise them the next year just to cover the loss in revenue. US conservatives think that cutting taxes while raising military spending fixes the economy, not so. Bush just cut taxes in '01 yet our deficit is still bigger than it was under Clinton. It's not a cure all and requires the right circumstances.

[globalbankfraud]

@crackmonster99 Here's the logic: "Everything else being equal", if you lower taxes individual people have more cash to spend & businesses' profits go up. Even though the tax rate has gone down the increase in economic activity causes overall tax revenue to go up. Conversely if you raise taxes people have less cash to spend & business profits go down, you also get more tax 'evasion', economic activity drops and overall tax revenue drops. Anyway it's a well known documented theory / truth.

[crackmonster99]

@globalbankfraud I like debating you, you believe what you say. Still it's just a theory. The type of tax cut you're talking about only works when it's given to the poor but even that is marginally effective. If you give it to the rich they will hold on to their money until they feel safe to invest and that creates no jobs in a down turn so you just spent money for nothing (like now in the US). Stimulus spending works better because it creates jobs instead of just handing out money.

[globalbankfraud]

@crackmonster99 I did say 'everything else being equal' and I was only talking total tax revenue. Sure there is much more too it. Won't really get anywhere until we literally through the crooks out of Washington & Parliament or go on a 'massive' campaign of non cooperation and civil disobedience. The Icelanders did a good job of getting rid of their cr*p government & the French know how to protest. Americans are fed on a diet of fear of the State and the British are lazy & gullible.

[crackmonster99]

@globalbankfraud I can't disagree with you there at all.

[Sres1]

@globalbankfraud Agreed, Osbournes cuts didn't go far enough, he should have cut the public sector off at the knees.

[globalbankfraud]

@Sres1 first part yes, second part no (I don't accept what someone else dealt me).

[AnnoyedDragon]

I'd like the idea of manufacturing returning to the UK, rather than importing cheap crap from China. But in order to sell we would have to devalue our currency to make it competitive; and reduce our standard of living to keep human resource costs to a minimum.

Human resource costs are reflected in the price of the product produced, whose going to have the cheaper product? China, which has no national minimum wage. Or the UK, with £5.93 an hour?

[globalbankfraud]

@AnnoyedDragon You've been watching too much mainstream media propaganda. They only hark on about devaluing currencies because it's the only way the dumb asses think they can decrease our national debt. God forbid we should reduce the size of government or stop financing illegitimate wars. If you devalue the £ it's more expensive to import commodities with which to manufacture products, as a net importer we suffer inflating food & fuel prices etc as can be seen. Can't fit any more in.

[AnnoyedDragon]

@globalbankfraud "You've been watching too much mainstream media propaganda"

Keep that condescending tone to yourself.

Hell, if I relied on mainstream media; would I be subscribed to channels like this to filter through the BS?

[Mackingster]

Another great post.