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| | The TaxPayers' Alliance (Site not responding. Last check: 2007-09-17) |
 | | One of economists' favourite conceits is the "lump of labour fallacy", which is rooted in the proposition that there is a fixed amount of work to be done in an economy - a "lump" of labour - which can be shared out in different ways to create fewer or more jobs. |
 | | The first I shall call the "lump of tax revenue fallacy", which is based on the notion that changes in tax rates have absolutely no impact on individual or business behaviour and, hence, on the arithmetic link between tax rates and revenue. |
 | | The static "lump of tax revenue" notion, which crucially ignores these dynamic effects of tax changes, is, therefore, "fallacious". |
| www.taxpayersalliance.com /opinion/individual_opinion.php?opinion_id=17 (770 words) |
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