Skip to content

Tax Receipts Hinge on Economic Performance — Spending Cuts Trump Tax Rises

Britain's latest tax increases have sparked divergent views: while some anticipate heavier fiscal burdens, others forecast improved public finances. Yet the Laffer Curve illustrates a crucial distinction — governments control tax rates, not tax revenues. The latter depends on the tax base multiplied by rates, and the base fluctuates beyond ministerial diktat.

KC Law (Economist)

Published by:

KC Law (Economist)

Law Ka Chung is a Hong Kong economist and financial columnist.

This post is for paying subscribers only

Subscribe

Already have an account? Sign In

Latest