Quote ="Him"*snip*'"
Just to add to the above, one of the most effective ways of very quickly bucking up a downturn in the economy happened in the early 90s when the (I guess) Tory government set a 100% Corporation Tax relief on capital investment.
That one very simple, easily administered thing led to a huge increase in turnover to any company who supplies anything in the production cycle to any other company, overnight businesses who had clung onto old uneconomical machinery suddenly had an opportunity to replace it with a discount against their next tax bill and of course the businesses that supplied them probably had a corresponding increase in their Corporation Tax on their increased profits the following year, like most taxation issues the dry world of accountancy often does not predict what the knock on effects of policies actually are - we saw this one immediately in a sudden resurgence of sales especially in the spring quarter when the tax year deadline approached and businesses wanted to offset a tax liability for some useful asset investment.
