drdel
Tour Rookie
Economics Paul, you have extra £50, you will spend it, so will whoever you spend it with. Companies, shops etc will take more income and make more profit and ultimately pay more tax. The Tory philosophy is that by reducing the tax rate at the higher level, the more they make in revenue, as higher earners are more willing to pay the tax and not look so much for tax avoidance schemes. Its a fine balance.
That will drag in more imports, so China, Germany etc will be happy - but the balance of payments perhaps not so !