21 May, 2008

The costs of taxation

There's a really interesting article on the costs taxation imposes on society.

Broadly speaking, the writer identifies 4 costs:
1. administrative
2. compliance
3. avoidance
4. dead weight

Definitely worth a read.

4 comments:

Alex said...

Good, but is the association: "low taxes = evil, cos that's what george bush tried" too engrained? Until very recently even the tories were scared to praise tax cuts... although it seems we may have just passed a crossroads on that one

Miss Middle of Manchester said...

You're talking to the person who has sympathy with the 'tax is theft' view of the world!

Alex said...

Of course, but how many of you out there are they? So many ordinary people, although they of course resent taxes, almost see them as a kind of neccessity, without which the big benign god in the sky who looks over them would not be able to function. And of course, as some taxes go to the NHS, advocating cuts means that you WANT MORE CHILDREN TO DIE, obviously.

Miss Middle of Manchester said...

Obviously, because I am right wing, I ate children for breakfast with eggs this morning.

I would argue that the public would not be willing to accept 'higher tax for better services' and are (because of economic predictions) wary about taxes which cause prices to rise.