31.   Variety of Taxes Governments can raise tax revenue only if they can identify the activities on which the tax rates apply.

32.   High marginal tax rates may act as a disincentive to working longer hours.

33.   If your income rises above a certain threshold, your tax rate also rises.

34.   The debate over tax rates figured prominently in the last election.

35.   Corporation tax and top value added tax rates were reduced, but wealth tax was increased.

36.   A radical overhaul of the tax system would seek to reduce income tax but curtail the vast range of exemptions, shelters, allowances and concessionary tax rates.

37.   The key features of the budget were a rise in the corporate tax rate and the closing of a number of tax loopholes.

38.   Where T is the proportional corporate tax rate.

39.   Lower tax rates have sharpened incentives in business.

40.   This is because the explicit tax rate and the means-tested benefit withdrawal rate exceeds unity.