Income Tax and Entrepreneurship in Britian

"Especially in the British context, mention should be made on the subtle but pervasive and harmful effect which high marginal income taxes cannot fail to have on entrepreneurial incentives. There can be little incentive to be alert to opportunities the gain from which will accrue to unknown others decided by the government. Something of a vicious cycle may indeed be noticed. That over one-quarter of British GNP is channelled directly through government is responsible for the high income-tax rates which sap the incentive to notice new opportunities--providing in turn fuel for the critics who point to the failure of the market to achieve prosperity, etc." - S.C. Littlechild in "The Fallacy of the Mixed Economy" (1978)