When will the liberal left ever learn some practical economics? - The higher the taxation (PAYE excepted) the less revenue comes in!'Plans to raise capital gains tax to 40 per cent in next week's Budget will cost the Treasury nearly £2.5billion in tax, a study claims today.
Free market think-tank the Adam Smith Institute warned that for every 1 per cent that Chancellor George Osborne puts up the rate, he will lose 2 per cent in revenue.
In a damning critique of the coalition's plans, their report warns ministers would need to axe 30,000 public sector jobs in order to pay for the resulting shortfall.'
The coalition has adopted a Liberal Democrat idea that the current CGT rate of 18 per cent is raised to match income tax rates of 40 or even 50 pence in the pound.
Free market think-tank the Adam Smith Institute warned that for every 1 per cent that Chancellor George Osborne puts up the rate, he will lose 2 per cent in revenue.
In a damning critique of the coalition's plans, their report warns ministers would need to axe 30,000 public sector jobs in order to pay for the resulting shortfall.'
The coalition has adopted a Liberal Democrat idea that the current CGT rate of 18 per cent is raised to match income tax rates of 40 or even 50 pence in the pound.
