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My point was if you reduce a 50% tax payers earnings of 100K by say 20k Then the taxman loses 10K in tax. If you give that 20K to say 5 people on average income you only generate 5K in tax. If you give it to 20 people on minimum wages you probably wouldn't see any of it back as tax. I can't do the sums to juggle the numbers to see where the sweet point is where the taxman benefits by a reduction in tax credit pay outs, unfortunately, although there may be some pay back there. |
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