Those who do not pay tax are presumably those whose income falls below the tax free threshold. If gross dividends are simply treated as ordinary income then we would all be treated as equal. There is no net loss when we receive a tax refund, in fact one can reasonably argue that that cash is better in the hands of the private individual than with that parliamentary administered bureaucracy. The individual might reinvest the refund as working capital; he might spend it and so increase demand thus increasing productivity; or it might increase the nations net wealth as personal savings. Friend, for the most part, would it not be more accurate to consider taxation as the real lost revenue?
