What if there was a consensus on the tax reforms the UK needs?
What if it was backed by policy experts from think tanks across the political spectrum, from the Adam Smith Institute to the Resolution Foundation?
The consensus is real. The question is: will anyone act on it?
What if it was backed by policy experts from think tanks across the political spectrum, from the Adam Smith Institute to the Resolution Foundation?
The consensus is real. The question is: will anyone act on it?
Launching today is a series of proposals backed by the Adam Smith Institute, Bright Blue, CenTax, the Centre for Policy Studies, the Institute for Public Policy Research, Joseph Rowntree Foundation, the New Economics Foundation, Resolution Foundation, Tax Policy Associates.
Everyone in that list disagrees on the fundamental political question of the size and role of the state.
But we all agree on how the basics of how the tax system should work. The rate is up for debate - but that's the easy bit.
But we all agree on how the basics of how the tax system should work. The rate is up for debate - but that's the easy bit.
All the proposed reforms could be tax-neutral: not tax cuts, not tax increases. Tax reforms to make the system more rational and drive growth.
(Or executed as tax cuts or tax increases, per your political preference)
(Or executed as tax cuts or tax increases, per your political preference)
Here's the list:
1. Abolish stamp duty on land
2. Scrap VAT exemptions/zero rates and lower the main rate (whilst protecting vulnerable groups).
3. End the high marginal rates faced by people coming off universal credit, earning £60k ot earning £100k. Marginal rates of 60%+ are a disgrace.
4. Merge employer and employee NICs with Income Tax
5. Tax landlords fairly - on their actual net income, and at the same rate as labour income.
6. Reform capital gains tax so it taxes real gains actually accrued in the UK
7. Reform the corporation tax base. End the capital/income distinction. Provide "full expensing" for all investment. End the bias towards debt.
I can't recall anything like this happening before. In part a credit to @CPSThinkTank, @CenTaxUK, @ASI, @IPPR, @NEF, @jrf_uk, @WeAreBrightBlue, @LabourTogether.
But in part a sign of the dire state of the tax system.
But in part a sign of the dire state of the tax system.
@CPSThinkTank @CenTaxUK @ASI @IPPR @NEF @jrf_uk @WeAreBrightBlue @LabourTogether We're overdue a Budget which doesn't just scrabble around for new revenue, but delivers on pro-growth reform.
I hope this Government will step up and, if they don't, that others will.
I hope this Government will step up and, if they don't, that others will.
@CPSThinkTank @CenTaxUK @ASI @IPPR @NEF @jrf_uk @WeAreBrightBlue @LabourTogether Full details: centax.org.uk/tax-reforms-fo…
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