Top tax rate should be the exception, not the rule
16 May 2023
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In the Media
Energy and Environment
Trade, Development, and Immigration
8 November 2024
Mark Littlewood quoted in The Express
IEA Director General Mark Littlewood has been quoted in The Daily Express responding to reports highlighting that the government’s failure to adjust income tax thresholds with inflation could drag up to 20 per cent of taxpayers into the top band by 2027.
Mark said:
“If we are determined to continue to see huge increases in government spending – which we have done since the Conservatives came to power in 2010 – then these sort of stealth taxes brought about by fiscal drag are an almost inevitable consequence.
“The incentive effects could be serious – we are deterring work and aspiration at key pinch points on the income spectrum where you might think we need it most. Expect growth to remain low, spending to remain high and taxes to get worse.
“This should be an avoidable doom loop but it is not one that any mainstream party seems willing to address.”
Read the full article here.
Mark said:
“If we are determined to continue to see huge increases in government spending – which we have done since the Conservatives came to power in 2010 – then these sort of stealth taxes brought about by fiscal drag are an almost inevitable consequence.
“The incentive effects could be serious – we are deterring work and aspiration at key pinch points on the income spectrum where you might think we need it most. Expect growth to remain low, spending to remain high and taxes to get worse.
“This should be an avoidable doom loop but it is not one that any mainstream party seems willing to address.”
Read the full article here.
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