DHI Bites: Talking tax

With Dr Arun Advani, Dr Andrew Summers and Charlotte Barbour

The authors of recently published research discussed their findings with Charlotte Barbour, Director of Tax for ICAS and Susan Murray, Director of the David Hume Institute to reflect on the implications for Scotland.

The researchers from LSE and Warwick presented new findings from analysing anonymised HMRC data of the taxes paid by the UK's top 1% and explored the relationship of headline tax rates with capital gains, total income and tax reliefs. They suggested putting a floor on the lowest tax rates with an Alternative Minimum Tax.

ICAS has called for more "honest public debate about who should pay tax and how much they should pay". Often in Scotland discussion on tax focuses only on the powers at Holyrood. However this research shows when considering total income, there is a complex relationship of different tax rates for people that are able to restructure their earnings.

As the post Covid-19 economy emerges, focus will undoubtedly turn to tax and paying for public services. Should a post-pandemic UK consider an Alternative Minimum Tax threshold?

While we can't bring you the Institute's usual thought-provoking events during Covid-19, we are working on bite-sized online sessions - like this one - to discuss new research. To hear about these events sign up to our newsletter or follow us online.

Click here to download the presentation slides.