The Daily Express, April 29, Professor Patrick Minford
Mr Hunt is reported as saying he wants to lower business tax rates but can only do so when higher growth produces sufficient tax revenue for him to be able to “afford it.”
This statement perfectly illustrates the muddle at the heart of this government’s fiscal, ie tax, policies.
For the whole point of keeping marginal tax rates low is to stimulate the growth the economy needs to pay its way.
By going ahead and raising corporation tax to 25 percent against universal business opposition and numerous economists’ warnings, the government has damaged the very growth it needs to keep its public accounts in long term order.
Meanwhile a bad tax situation is being further worsened by driving up marginal income tax rates by not indexing the tax thresholds.
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