Tax and Fiscal Policy

Tax hikes will kill-off the economic recovery

Professor Len Shackleton writes for The Telegraph

IEA Editorial & Research Fellow, Professor Len Shackleton, penned an op-ed for The Telegraph, arguing if the Chancellor Rishi Sunak wishes to see a full economic recovery, tax rises must be avoided at all costs.

Len said: “Public borrowing may have fallen in July, but it must come down much further. Yet the Government wants permanent increases in spending on social care, the health service, infrastructure, the military, “levelling up” and much else. So should taxes rise? No, they shouldn’t. High taxes deter enterprise, investment and innovation. At the margin, they discourage people from working as much as they might otherwise do“.

Read the full article here.