I think that is broadly the idea behind Truss eliminating the top rate. Tax people at a level they believe is reasonable and they are less likely to try and avoid paying it, so the overall take actually increases. In itself a perfecty sensible argument, and Thatcher proved that it could work. Problem is you need to have measures in place first to ensure compliance, or IMO anyway. To just do it in present circumstances was daft. If she had wanted to be radical she could have taken 2p off the 40p rate. That would have helped a lot of people, and might well have stimulated some growth.Just floating this ( im not an economist )
If everyone beyond say 18k a year paid a flat rate of 20%, no exceptions, including on bonuses and any other 'benefits' of their job / investments, would we be better or worse off? At the mo a lot of high earners get away with cheating their tax bills, so a 20%, non negotiable rate for all, would be fair?
Including big tech and corporations, i.e google and amazon forvexample