Levers for Green Recovery and Economic Recovery Income tax, VAT, NI generates the biggest sums for the state (Scotland has powers over income tax rates) - Judgement of rate setting is a tricky balance (increase rate doesn't always raise funds). VAT is a good tax in that it isn't easy to avoid but bad in that poorer people are buying things that are high in VAT - regressive tax. Council tax raised at local authority level (does this need reform i.e. land tax?) - typically property taxes don't generate big sums for the state.
I think a review / overhaul of the Council Tax system would bring benefits. It would probably take longer to undertake and implement than it will for us to come out of the other side of the pandemic, so not sure whether it's something we should think about within this context.
If we want to come out of this as a fairer society, we should increase taxes at the very top end of the scale. Any other taxes, i.e. not based on income or wealth, are inherently unfair, such as VAT mentioned above, as they will eat up more of a low-earner's income than a wealthy landowner.
I agree. The Scottish Government had promised to to reform local taxation but Covid-19 has made this even more urgent. The taxation system has not kept up with the digital revolution rendering the big name companies fabulously profitable whilst paying minimal tax, employing non unionised staff on minimum wages who as a result will be paying minimal tax.
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