As I’ve always said: we’re already on the downward sloping part of the Laffer curve. That means cutting rates means less tax. And as night follows day, that’ s what is happening.
Could even be true. So Ritchie’s evidence is:
Last month Treasury receipts from VAT and income tax – which we all pay – rose by 6.4 per cent relative to October 2011.
So we’ve lowered the top income tax rate and raised by a grand or so the personal allowance for income tax and receipts have risen.
We might indeed be on the left hand part of the curve now but clearly we were on the right hand side of it before these tax changes.