We Can Live With Higher Taxes But Only If We Secure Serious Reforms

22nd November 2022

An article from Paul Johnson, Director of the Institute for Fiscal Studies highlights that we will all be paying higher taxes for decades to come.

He says, "So here is my prediction: higher taxes are the new normal. The tax take will not return to 33 per cent in my lifetime. For reference, I can reasonably expect still to be around in the 2050s."

"Yet raising income tax by holding down allowances bears heaviest on lower earners. Pushing up council tax means increasing a tax that is based on 1991 house values and is regressive with respect to the value of the home. Raising the main rate of corporation tax without fixing the base on which the tax is levied is not efficient: it will unnecessarily deter investment."

Read the full article HERE