Thursday, October 20, 2011

Tax increases actually means lower tax revenue

Osborne really hasn't learned yet how economics works.
2 tax rises on petrol which has already caused revenues to drop, will drop further.
The idea is that the new rises will bring in an extra Stg 3.5 bn.
My guess is that tax revenues on petrol will actually drop!

Logic says that if petrol goes down, people travel more and spend more and therefore more tax revenue

We shall see who is right!



















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