by Sparse1 » Sun Dec 02, 2012 9:31 am
Income tax and other direct taxation is largely irrelevant because it is factored into the labour market.
Indirect taxation is much more of an issue, in the UK the totally absurd level of tax on fuel is massively damaging to those on low-incomes and dramatically increases the costs of many businesses which forces them to then cut costs elsewhere.
If the government scrapped fuel duty and made the money up on income tax they would be extremely unpopular but would make pretty much everybody better off.
“Increased means and increased leisure are the two civilizers of man” - Disraeli