UK Telegraph: 50p Tax Rate ‘Failing to Boost Revenues’
The Treasury received £10.35 billion in income tax payments from those paying by self-assessment last month, a drop of £509 million compared with January 2011. Most other taxes produced higher revenues over the same period.
Senior sources said that the first official figures indicated that there had been “manoeuvring” by well-off Britons to avoid the new higher rate. The figures will add to pressure on the Coalition to drop the levy amid fears it is forcing entrepreneurs to relocate abroad.
I find it amazing that the Laffer Curve even needs outside proof, but if it truly is needed, this is it. Raise taxes, and you drive away revenue sources and contract the tax base; lower taxes, and you foster entrepreneurship and growth, and likewise expand the tax base.
This shouldn’t be difficult, folks. We need to make the United States of America absolutely irresistible to business and industry, and much of how you do that is by drastically cutting taxes. As we see in Britain, the idea that drastically doing the opposite will increase revenue is, well, bollocks.