I can not agree with Martin Sandbu that financial salvation for many international locations lies in greater tax burdens (“The new tax and spend orthodoxy”, Opinion August 5).
The phrases within the accompanying cartoon suggesting that the years 1980-2020 have been a interval of significantly low taxes can have little resonance for a lot of UK taxpayers.
The oblique tax burden is way greater than earlier than 1980, and so too with direct taxes at some ranges. The one exception can be on the prime revenue ranges, the place the absurdly excessive pre-1980 charges truly raised much less income than the a lot decrease ones that changed them.
Within the UK, revenue tax and social safety contributions must be considered together with the nation’s heavy use of means examined advantages with the related earnings clawbacks, and the rising burden of scholar mortgage repayments.
Efficient marginal tax charges are already very excessive for a lot of earners, and at a number of factors within the revenue scale they’ve been creeping up considerably over the previous 18 years.
It’s inside this era that productiveness progress — nonetheless the one actual hope for the long-term future in any nation — has floor to a halt within the UK. Can we make certain that there is no such thing as a causal connection?
Worcester Park, Surrey, UK
— to www.ft.com