Their central estimate is that the taxable income elasticity for this group is 0.46, which implies a revenue-maximizing tax rate on earned income of 56%.29 This in turn (accounting for NICs and indirect taxes) corresponds to an income tax rate of 40%.

FORBES: There Really is a Laffer Curve

What is especially important is that local operating jobs create additional indirect jobs in the community at a rate of about 2-to-1.

FORBES: What Do Energy Sector Jobs Do For Us?

This data took the CPI to a 29-month high of 4.4% and perhaps of greater concern the CPIY annual rate, which excludes the effects of changes in indirect taxes, rose even more sharply.

FORBES: No Need To Hike Rates In The UK

The Bank tried to play down the bad news on inflation, ascribing it to the hike in indirect taxes in July's budget and (for the headline rate) the recent increases in interest rates.

ECONOMIST: Pause for thought

The Bank's favourite measure of inflation, which excludes both mortgage-interest costs and indirect-tax changes, was unchanged in July, at an annual rate of 2.2% (see chart).

ECONOMIST: Pause for thought