But unproductive activities were taxed highly

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May 19, 2013

But unproductive activities were taxed highly

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At the heart of the job producing ingenuity of the British tax code was the differential tax rate, dependent upon the type of activity. Uniformly low taxes on both income and capital gains, of course, would have done no good at all as there would then be no incentive for the rich to invest in business expansion. But unproductive activities were taxed highly, and productive activities a lot less so.

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