Some people think the tax rate and the tax take are linked so if the rate increases or decreases the take follows.
That isn’t always the case.
A cut in tax rates can lead to less effort put into avoidance so productivity improves, a cut can also lead to more spending and both feed into a higher tax take.
Some people think more is better when it comes to taking tax and spending it.
That isn’t always the case either.
The quality of the spend is often, maybe always, more important than the quantity.
Some people are confused about the relationship between tax and services. For example, Associate Health Minister Julie Ann Genter says tax cuts would come at the expense of the fight against measles.
Is she right?