Tax take vs tax rate

We have a choice.

We can vote for parties that want higher tax rates or for those that foster a higher tax take.

What’s the difference?

Higher tax rates are a hand brake on productivity and economic growth and, hard as it is for some to grasp, often lead to a lower tax take.

A higher tax take resulting from increased productivity and economic growth can, in time, lead to lower tax rates.

Higher tax rates are the equivalent of dividing up the same sized pie – some gain and some lose.

Higher productivity and economic growth, increase the size of the pie, and/or number of pies, providing more for everyone.

The bigger and/or more numerous the pies, the smaller the proportion of each slice that is needed for tax.

We have a choice.

We can vote for parties that want to take more or we can vote for parties that want to help us grow more.

 

We have a choice.

We can vote for parties that think they are better at spending our money than we are or for parties that leave us with more of what we earn.

2 Responses to Tax take vs tax rate

  1. adamsmith1922 says:

    Reblogged this on The Inquiring Mind and commented:
    Good post, but I suspect many will fall for a a blurring of the reality that this post draws attention to

    Like

  2. Bulaman says:

    The tax and waste(trels) who currently think to rule us with their morally (superiority complex) laden statements of unite and kindness will only achieve inflation (from currency collapse) and shared misery as we descend into New Venezuelaland. Capital flight and a field day for accountants and minimisations specialists are the only outcomes for those that ignore the “Laffer Curve”.

    A political goal to get behind: New Zealand 2020
    20 percent fewer public servants and bureaucrats.
    A 20 percent pay cut for those that remain.

    Like

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