[DemolitionRed]

Originally Posted by Oliver_W

I prefer reading this sort of thing to hearing it, is there a transcript, or a blog saying the same thing, or a tl;dr?

Respected economist Richard Mathew writes blogs which I follow. He put up the video I linked to here. Here are two of his blogs worth reading and that more or less says the same thing as the video.

http://www.taxresearch.org.uk/Blog/?s=magic+money+tree
http://www.taxresearch.org.uk/Blog/2...fford-the-nhs/

[Oliver_W]

Originally Posted by DemolitionRed

Respected economist Richard Mathew writes blogs which I follow. He put up the video I linked to here. Here are two of his blogs worth reading and that more or less says the same thing as the video.

http://www.taxresearch.org.uk/Blog/?s=magic+money+tree
http://www.taxresearch.org.uk/Blog/2...fford-the-nhs/

Thanks for the links, at the very least they make an interesting read. One of the arguments he makes for NHS spending (the staff will put the money they receive into the economy) is similar to one I make against high taxes - people have money in their pockets, they spend it, so money is raised through VAT and business taxes.

[user104658]

Originally Posted by Oliver_W

Thanks for the links, at the very least they make an interesting read. One of the arguments he makes for NHS spending (the staff will put the money they receive into the economy) is similar to one I make against high taxes - people have money in their pockets, they spend it, so money is raised through VAT and business taxes.

It's also why it's an utterly stupid "austerity policy" to cut things like Tax Credits for families, or disability benefits. Every last penny of that money gets SPENT... it's a cash injection straight into the active economy. Working families and the disabled aren't sitting on cash stockpiles or making offshore investments... they are circulating that money within the country, which increases profits, and creates jobs. These are the LAST sorts of cuts that should ever be made. In fact, in terms of a thriving economy - for all retail or service providing industries - the more money that is burning a hole in the pockets of people who will actually spend it, the better. This is one of the fundamental flaws of austerity-thinking.

[DemolitionRed]

Originally Posted by The_Hogfather

Thanks for the links, at the very least they make an interesting read. One of the arguments he makes for NHS spending (the staff will put the money they receive into the economy) is similar to one I make against high taxes - people have money in their pockets, they spend it, so money is raised through VAT and business taxes.

TS has mainly answered this.

The problem with taxes is, the higher earners are putting their money into tax havens. Every pound of tax money that gets wheedled away in offshore accounts (tax avoidance) is a pound down in our economy. Tax avoidance in this country is massive and no amount of the small earners tax contributions and spending can cover what's being lost. What we are presently doing is subsidizing what the tax avoiders aren't paying. Too little tax and we have to print more money to ward off deflation. Higher taxes can cause inflation. Its a very fine balancing act.

Your right, tax balances our economy, without tax they couldn't print money because its an intrinsic part of how our economy works.

[Oliver_W]

Originally Posted by DemolitionRed

..

If a flat tax rate was in place, high earners would have less reason to avoid tax.

[DemolitionRed]

Originally Posted by The_Hogfather

If a flat tax rate was in place, high earners would have less reason to avoid tax.

People who can legally avoid paying tax will always be a problem, regardless. Romania has flat rate tax and its probably one of the biggest tax abusers in Europe.

[Oliver_W]

Originally Posted by DemolitionRed

Romania has flat rate tax and its probably one of the biggest tax abusers in Europe.

And Texas has no income tax at all, and they have a budget surplus.

[DemolitionRed]

Originally Posted by The_Hogfather

And Texas has no income tax at all, and they have a budget surplus.

Indeed but that isn't country wide. We could devolve tax powers to certain parts of the UK but I think we could only do that with land taxes.