I really like numeracy, which is literacy with numbers. That’s why I really like the second line in “Taxman.” If the taxman is getting 19 kilos and the individual taxed is protecting 1 pound, that suggests a marginal tax charge of 95 %, which is the precise charge they paid on their “unearned” revenue. I put “unearned” in citation marks as a result of, after all, it was earned—the Beatles earned it on their investments.
George Harrison additionally knew on whom in charge these excessive tax charges: Britain’s politicians. That’s why within the background, you may hear the singer castigating grasping, greedy Mr. Wilson and Mr. Heath. Harold Wilson, of the Labor Get together, was prime minister from 1964 to 1970, when Harrison wrote the track. Ted Heath led the Conservative Get together from 1965 to 1975. He was prime minister from 1970 to 1974, however that was nicely after the track was written.
Fortuitously, Margaret Thatcher grew to become prime minister in 1979. On the time the highest charge on each earned revenue and “unearned” revenue (you may inform that I hate that time period) was a hefty 83 %. That very same 12 months, in addition to chopping charges at decrease revenue ranges, she lower the highest charge to 60 % and within the late Nineteen Eighties lower it once more to 40 %.
That is from David R. Henderson, “We Want One other George Harrison,” TaxBytes, Institute for Coverage Innovation, Could 17, 2023.
Learn the entire factor, which isn’t lengthy.
