Tax and Fiscal Policy

Divided opinion over post-pandemic tax will start a longer-term economic war

Mark Littlewood writes for The Times

With the national debt exceeding £2 trillion, a divide has emerged between hawks and doves. As the IEA’s Director General Mark Littlewood explains, “the former camp believes that a dial-up in tax rates is necessary” and the doves “insist that increasing the tax burden on an already beleaguered private sector will choke off any meaningful economic recovery.”

In his biweekly column for The Times, Mark argues that the doves are right to argue that there is a real risk that tax rises could exacerbate a vicious cycle of lower growth, leading to diminished tax receipts and a worsening national debt situation.

Read the full article here.