"Dave" wrote in message
...
On Wed, 12 Jan 2005 01:10:39 -0000, "Donal" said:

Productivity has been increasing for hundreds of years, while taxation
has
been increasing.

The main driving force behind productivity increases is *technology*.

I think that's true. But when we talk "technology" we're talking capital
investment. If you increase the tax on returns from capital investment you
reduce the incentive to make that investment. If you decrease the tax on
returns from capital investment you increase the incentive to make that
investment. Basic economics.

I see that you have tried to sidestep the issue.

"Productivity has been increasing for hundreds of years, while taxation has
been increasing."

You need to rethink your understanding of the problem.

[hint] Overall production is more important than productivity.



Regards


Donal
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