Sunday, 25 March 2012

The rich can look after themselves

Andrew Marr is questioning Danny Alexander about the effects of the budget. Danny tells us that the rich are going to be taxed more and Andrew comes back saying there is no way that Danny could know that, and how much the rich pay will depend on the skills of the accountants. Danny counters that the figures have been independently verified.

If Andrew had asked about the revenue from an income tax rise then he may feel that such a raise produces a definite amount of Government revenue. However it could also be the case that an increase in taxation causes more people to be unemployed, so whenever there is any change in raising revenue there is some guesswork about the actual amount of revenue and where it is coming from.

Danny has accepted a compromise which he feels will raise more tax from the rich and this was independently verified. Andrew has a valid point - the rich get more assistance in tax avoidance. The Rolling Stones are famous for avoiding tax and the system should not be weighted in favour of the rich. The rich can look after themselves.

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