- Person A wants the government to spend more money on something
- Person B says we can't afford it
- Person C says of course we can - tax the rich/cut benefits/etc.
Well, I found an answer. It's a government document and I'd be the first to agree that "Direct effects of illustrative tax changes" is not the snappiest title - but stay with me!
The short version is just two pages long and shows just how much money you could raise by adding 1p to the major tax rates - around £4 billion for a penny on standard rate income tax for example.
You want to spend around £800 million? Easy - raise Corporation Tax by 1%. Even better, that will yield twice as much by the end of the decade.
For the unabridged and Excel versions of this fascinating document go here