The Laffer Curve illustrates a sweet spot of taxation to produce maximum revenue.
People will always avoid tax if it's too high. Either they'll pay millions to accountants to avoid paying tens of millions to the taxman, or they'll simply not bother working so hard and they'll stop fighting to realise their career potential.
The answer is not for the taxman to spend tens of millions to reclaim tens of millions of tax. The answer is to lower tax rates to the sweet spot of the Laffer Curve and thus maximise revenue.
That's all too boring and technical for the media, though, and it won't sell papers. The media aren't concerned with maximising Treasury revenue. Instead they indulge people's instinctive grievances around inequality and demonize the wealthy.
People will always avoid tax if it's too high. Either they'll pay millions to accountants to avoid paying tens of millions to the taxman, or they'll simply not bother working so hard and they'll stop fighting to realise their career potential.
The answer is not for the taxman to spend tens of millions to reclaim tens of millions of tax. The answer is to lower tax rates to the sweet spot of the Laffer Curve and thus maximise revenue.
That's all too boring and technical for the media, though, and it won't sell papers. The media aren't concerned with maximising Treasury revenue. Instead they indulge people's instinctive grievances around inequality and demonize the wealthy.
https://en.wikipedia.org/wiki/Laffer_curve