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interestrateripoff

Peak Tax Revenue

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http://www.guardian.co.uk/news/datablog/2010/apr/25/tax-receipts-1963

The link has lost the original data set, the googledocs file has been deleted but attached is the numbers in a txt file as I saved a copy of the original data, I was going to post a csv file but it would appear I can't upload that type of file for some reason.

Since viewing this several months ago I've been musing whether we might in fact have hit "peak tax" (HPC possible exclusive haven't found anything on the web which has used this term yet, although maybe I've not searched hard enough), I'm not talking about the laffer curve, I'm actually saying govts now cannot extract the revenues needed from the tax base to pay for the promises made. i.e Govts now cannot raise revenue fast enough via the tax system to cover the costs even if they get growth, the compound effect of the spending commitments is already too great combined with the added double whammy of the compound debt problem in western economies means taxes will never cover expenditure. Especially when you factor in the move towards globalisation and the reduction of worker wages, tax revenues cannot recover or service debt. Bankruptcy/default/massive restructuring and the breaking of promises made are the only options.

Yes they might be able to increase taxes but this will never keep pace with spending commitments. Hard choices are going to have to be made about what promises can be kept, but the modern high cost economic model is doomed to failure.

I would argue that in many US states we are already seeing the end game coming into play with "Peak Tax".

http://finance.yahoo.com/loans/article/105909/States-That-Can

http://www.huffingtonpost.com/2010/12/05/states-debt-bankruptcy-economic-crisis_n_792254.html

http://www.jrdeputyaccountant.com/2009/02/46-states-could-face-bankruptcy-in.html

http://www.businessinsider.com/americas-most-bankrupt-cities-2010-12?slop=1

I know that the various points in this have been made ad infinitum on here, but I quite like the idea of Peak Tax, obviously our political elites won't as they believe they can defy logic and reality which they believe they control.

Are tax revenues now in terminal decline compared to expenditure?

UK Tax Receipts.txt

UK Tax Receipts.txt

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Rename the .csv to .txt and upload, then switch back on your your machine. ;)

Tend to agree they more they try and take now (and inflate away) the wore it is going to get for pretty much operating in the economy.

The way the banksters have been bailed out the black market should do increasingly well - with absolutely no moral aversion to either operating in it or using it after the way the taxpyer has been defrauded to pay for the banksters losses and increased bonuses.

Edited by OnlyMe

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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