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Are there any good arguments against cutting income taxes?

24 Aug 2005
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Not only this, but cuts in marginal tax rates induce people to work harder in situations where they have an effective choice between work and leisure hours. Davidson shows that the highest earners in Australia already pay much more than their 'share' of charitable donations, and that 'high levels of taxation - especially high rates of taxation - crowd out philanthropy'.Sinclair Davidson addresses four key arguments used by opponents of lower taxation, and finds they are misleading or contestable. He finds that in a sharply 'progressive' tax system like ours, higher income earners pay much more than their fair share in taxation. Not only this, but cuts in marginal tax rates induce people to work harder in situations where they have an effective choice between work and leisure hours. Davidson shows that the highest earners in Australia already pay much more than their 'share' of charitable donations, and that 'high levels of taxation - especially high rates of taxation - crowd out philanthropy'.

 

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2005
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