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The Cost of Cutting Taxes

8.07.05

The Cost of Cutting Taxes

Cutting taxes may seem attractive. But the cost of tax cuts as a result of consequent cuts to spending is often studiously ignored by those who promote them.

In the last of the State of the Nation presentations hosted by the St Andrews Trust for the Study of Religion and Society exploring issues for the 2005 elections, economist Brian Easton addresses the tax debate.

In his address, Dr Easton explains the damage a reduction in taxes would cause if there is no offsetting reduction in expenditure. There can be income tax cuts, he argues, providing there are also spending cuts and he goes on to look at what and where those cuts might be.

Dr Easton says his presentation is limited because most of the parties have yet to explain how they are going to fund their proposed tax cuts. As a result the lecture will offer a framework for voters to evaluate party proposals when they are finally published.

The presentation is from 12.15 to 1.00 at St Andrews on the Terrace on Tuesday 12th July.

ENDS


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