... considered as a destabilising economy? In my opinion, a destabilising economy is characterised by high inflation, high unemployment, low aggregate demand and supply. Hopefully, I will be able to show that none of these were completely achieved after the 1987 budget. So why cut income tax? Firstly, lower income tax allows individuals to keep a greater proportion of their income. This means that individuals will work harder knowing that any extra income they earn will not be going to the taxman. From a business perspective, businesses will be able to flourish as a result of reductions in higher rates of tax. This is because those who want to set up a business will not worry about the fact that the more successful they become, the more money they would have to give to the taxman. A reduction in income tax also means it is likely for individuals to evade or avoid ...

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