@msolga,
Thanks for being more specific msolga, now I can see where you are coming from.
What about the income taxes that will be collected from people who are making money over this?
Wouldn't (couldn't) that go back to repaying that money?
If the gov't is only paying for the security, 20 million, I think income tax would be at least equal to that amount will be collected.
Below is a cut and paste of income tax rates in England...
Income tax: taxable bands and rates 2010/2011
Taxable income rate of tax
0 - £2,440 10 per cent (starting rate for savings only)
0 - £37,400 20 per cent (basic rate)
£37,401 - £150,000 40 per cent (higher rate)
Over £150,000 50 per cent (additional rate)
For no good reason, I'm going to say it will average out to 25% income tax.
At that, if 75 million was spent via increased tourism, intra-country increased spending, the taxes collected would be slightly over 18 million. Pretty close to 20 million.
If 250,000 people showed up for that other royal wedding, I'm sure at least that many would be around for this one.
That equals only 300 spent by each tourist or local visitor.
Sure, there will be a lot of under the table earnings, but income will be declared by hotels, restaurants, shops, hospitals, services, etc. etc.
I'm thinking a lot more than 250K people will at some time during the next year will plan a trip there, either because of interest in the event, or because interest in general was aroused.
The gov't would get their money back via taxes.
Plus the people would have an increase in income.
The gov't spending the money on security isn't being done in a vacuum. The ripples will go out, and then when the border of income is hit, will travel back to them.
In fact there will be multiple ripples.
A tourist gives me 100, I pay tax of 20 and spend 80 at a business.
The business who gets my 80, pays tax of 16 and spends 64, which is someone elses income.
The gov't then makes 13 off of that 3rd person who makes that income, and 51 is spent.
Now, whether the gov't decides to pay themselves back is another story.