Looming Tax Hikes
30 August 2024
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Economic Theory
Markets and Morality
Tom Clougherty referenced in the Telegraph
IEA Executive Director Tom Clougherty has been quoted in The Telegraph commenting on reports that the October budget will include tax rises.
The article said:
“Tom Clougherty, of the Institute of Economic Affairs think tank, said: ‘The Government is softening voters up for a tax-raising budget in October. It is also important to remember that the incidence of a tax doesn’t always fall on the person who pays it. Workers usually lose out when corporation tax is increased, for example. Significant tax increases that don’t affect ‘working people’ are a fantasy.
“Speaking to BBC News, Paul Johnson, of the Institute for Fiscal Studies, said direct taxes on people with average wages were ‘the lowest they’ve been in 50 years’. He continued: ‘Trying to significantly increase taxes without impacting that group of people will be very complex and potentially have some negative economic consequences.
“The Telegraph previously reported that an increase in capital gains tax under a Labour government would actually cause receipts to the Treasury to decline, instead of increasing revenue to help plug gaps in the Government’s finances.”
You can read the full piece here.
The article said:
“Tom Clougherty, of the Institute of Economic Affairs think tank, said: ‘The Government is softening voters up for a tax-raising budget in October. It is also important to remember that the incidence of a tax doesn’t always fall on the person who pays it. Workers usually lose out when corporation tax is increased, for example. Significant tax increases that don’t affect ‘working people’ are a fantasy.
“Speaking to BBC News, Paul Johnson, of the Institute for Fiscal Studies, said direct taxes on people with average wages were ‘the lowest they’ve been in 50 years’. He continued: ‘Trying to significantly increase taxes without impacting that group of people will be very complex and potentially have some negative economic consequences.
“The Telegraph previously reported that an increase in capital gains tax under a Labour government would actually cause receipts to the Treasury to decline, instead of increasing revenue to help plug gaps in the Government’s finances.”
You can read the full piece here.
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