The same argument that is being currently made re the 50p tax rate could be made here. Charge people more and you get less tax. This is the line being spouted in support of abolishing the 50p tax rate and lowering it. Talking head John Redwood was on all TV stations yesterday stating the very simple soundbite..."Tax people less" said he "and they will stay here, not try to avoid tax and therefore more money will reach the Treasury"
A rather dubious synopsis there I would have thought from dear ould John..but heavens best not to go into the pros and cons of the 50p tax rate again, but..but the same principle could apply to the motorist could it not?
Tax the already flogged motorist into the higher echelons and he will use his car less, thereby producing less revenue for the treasury. Lower all taxes and he will use his car more...I'm only quoting the current Conservative line!
