Lord Peston
Main Page: Lord Peston (Labour - Life peer)Department Debates - View all Lord Peston's debates with the HM Treasury
(10 years, 11 months ago)
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Lord Newby
My Lords, I think that the noble Lord overestimates my drafting skills.
Lord Peston
My Lords, according to this bit of paper the original Question asked “what assessment” the Government have made. As far as I can see, they have made no assessment. Does the noble Lord remember, from whenever he learnt some economics, that economic theory does not tell us anything at all about the optimum rate of tax? This is because people with a greater preference for leisure will work less and pay less tax, if you cut the tax. That is why economics and economists are such a pain in the neck.
Lord Newby
My Lords, I could not possibly comment on that last point. I refer the noble Lord, and indeed all other noble Lords, to the extremely comprehensive assessment made by HMRC last year, entitled The Exchequer effect of the 50 per cent additional rate of income tax.