Tuesday 7 July 2009

While I think of it....

In regards to Gordo and his apparent smarts, I want to explain to you how, if you have a brain and you think, you could have figured out that killing the 10% tax rate was a bad idea.

Tax works like a ladder, the lower you are the lower you pay, the higher you are the more you pay.

So think of it like this...

40% Top rate..
30% lower step
22% little lower
10% even lower
No tax, ground floor.

Now if you remove the 10%, and lower the 22% to 20%, you still have a larger step up.

Effectively it is like removing a rung from the ladder...

Now, I don't know about you, but I do not like larger steps like that, not on ladders....

I could never suggest someone who does something like that has a brain.

Does the way I explain it make sense? Am I using words that are too long?

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