An example of the Laffer curve in 2012 in a US State. Not a good result.
Remember thatchers tax reforms from the socialists in the 80s ?
High tax always ends up in disaster. Its happening know here in the UK with tax rates the highest in 70 years.
Look at Ireland with its 12% corporation tax and the investment its had.
The impact of low commodity prices at the core of Kansas’ industrial base had a lot to do with this and raising taxes elsewhere.
Your post is laughable.
Socialism always ends in failure it’s the ideology behind your arguments.
When the UK reduced taxes to 19% we had increases in tax revenues.
Classic Marxism LOL
Fair tax policies work better than punitive ones
Are you talking about income taxes? This proposal is not about an income tax.
The UK doesn’t have a wealth tax yet based on this article in 2021.
It not what part of your link states.
- It would also increase the top tax rate for Americans making $400,000 a year to 39.6% from 37%, reversing a Trump-era tax bill.
Infamously, last year, Truss claimed the rise in the revenue raised by corporation related taxes was a result of a 1% cut in the rate of corporation tax to 19%. This gives the (false) impression that cutting the rate of this tax led directly to revenues going up. Self-evidently one thing came after the other (the rise in revenues did happened after the cut) but there was no such causal link. Revenues went up but not because of the cut. As usual, treat anything coming out of Truss’ mouth as dubious.
It was cut from 28% in 2010 to 19% in 2017.
Tax revenues increased.
Truss was right
You are wrong. Business pays for everything and imposing high taxes on them moves them to other countries, puts people out of work and drives wages down.
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Notice how in the UK we were saying back in 2008 that GDP per head was going to overtake the USA.
Now the UK has the highest taxes in 70 years the USA is accelerating away from the UK (in terms of GDP per head) and the UK is cratering.
These figures don’t show 2023 but there is a big downward curve in the UK GDP per capita compared to the USA figures. The UK has the highest taxation for over 70 years and corporation tax has increased by 30% - expect this figures to look even worse over the next year or so.
You’re right. I thought it was a tax on assets. It’s an income tax on earned and unearned income.
I’m not a fan.
https://www.axios.com/2023/03/07/biden-medicare-proposal-debt-ceiling-talks
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2021–22[39]|Rate|Income tax rate|Gross income|
| — | — | — |
|Starter rate|19%|£12,571† – £14,667|
|Basic rate|20%|£14,668 – £25,296|
|Intermediate rate|21%|£25,297 – £43,662|
|Higher rate|41%|£43,663 – £150,000 ††|
|Top rate|46%|Above £150,001 ††|
I worry that your misinformation is causing you to make the wrong conclusions. You should leave that to idiots like Truss, look how well she did.
Revenues from corporation taxes rose after 2010 for a bunch of reasons, but not because the primary corporation tax rate was lowered. I’d love for you to explain how you see it though. How does dropping the tax rate by one third end up pulling in more revenues? Within a few years? Please give your understanding of how this works.
(PS I know what actually happened so very much looking forward to your explanation.)
It attracts more foreign investment for a start, meaning more jobs, more corporation tax and more PAYE taxes. They also have a knock on effect in the economy by buying from local companies and businesses as they grow and expand. In addition, companies have more money to spend on wages, increasing people’s personal disposable incomes which in turn gets spent in the economy
In 2010 the country was recovering from being bankrupt by the last labour government in 2008. I can’t wait to hear your story on how increases in tax revenues had nothing to do with reduced taxation and the Laffer Curve.
Except your reasons are not why corporate tax revenues increased. Especially as you got distracted into individual spending when the topic at hand is tax revenue from businesses. Stay focused, please.
The increase in business taxes might have marginally improved by new investment from overseas - but truly this did not make a big difference. No you are going to have try harder.
PS the financial crisis in 2008 was caused by inadequate finance sector regulation over decades. Not the labour government.
The labour government saw this coming down the track - they did nothing.
Now lets hear why you think lowering tax rates didn’t increase tax revenues…
(Yes, and the previous tory government were all over this problem. Not.)
Its not my view. It is simply me telling you what happened. The actual events were that after the basic corporation tax came down by a third, two key things happened. If there was simply a drop in the tax rate then, of course, the revenues from business taxes would have also come down. That is obvious to everyone.
The first thing was that other business taxes went up. More revenues were taken from corporations from other tax mechanisms. This is well documented.
The second thing was that business profits went up. As the country and the businesses moved out of the 2008 crash their profits increased. So the revenue from the basic corporation taxes also went up.
So what occurred was that business tax revenues did increase in the years following the cut in the corporation tax rate. What did not happen was that revenues went up because of this cut. That simply is not true. In fact, if the tax rate at remained at 28% then revenues would have gone up more.
It was dangerously misleading of Truss to pretend that there was a cause and effect going on. This claim simply suited her ideology so she ignored reality. This is dangerous because it can make people make the wrong decisions and support the wrong policies for the wrong reasons. Which is why it is important to confirm what took place.
Absolute bollocks mate 
If you are right, the higher the corporation tax, the higher the tax revenues, which is just absurd.
Businesses pay for everything, the more that businesses make the more tax they pay, the higher the tax rate, businesses avoid tax by moving abroad or protect revenues by laying off workers, reducing PAYE and NI tax contributions. Thats how it works
Thatcher did the same in the early 80s when taxes were 60/70% and fixed the economy. Socialists never ever learn.
You seem to be suggesting that if you reduce the tax level the actual takings in tax go up. I hope you are not consulting to other industries. You would be telling farmers to plow up a third of their crop so that the yield will go up. Or guiding the makers of quilted jackets to take out a third of the fleece so that their customers get warmer.
You were also presenting theory and concept. You are ignoring what actually happened in the UK over the decade since the corporation tax cut. I can’t help you if you simply prefer to ignore facts. Sorry mate, on that you are on your own.
Perhaps not Strath, but if you reduced the farmers tax burdens they would either invest in their companies or set on more staff. More staff = More PAYE so collectively they will be paying more tax than if they just increased the farmers tax burden. Plus, you have given people a job.