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Tax Beliefs in Britain

  • Submitted by: John Mason, Glasgow Shettleston, Scottish National Party.
  • Date lodged: Monday, 25 September 2023
  • Motion reference: S6M-10472

That the Parliament notes the views of the former Prime Minister, Liz Truss, and the Shadow Chancellor of the Exchequer, Rachel Reeves, who, it believes, both advocated for economic growth over taxation to fund public services by relying on increased GDP, not higher taxes, which, it understands was the subject of an article in The New Statesman; believes that, while the UK's tax-to-GDP ratio is at its highest since the mid-1960s, it remains relatively low compared to major European economies by more than seven percentage points; notes reports that the top 10% of earners contribute 60% of total tax receipts, illustrating what it sees as income inequality; accepts the view that funding public services at 40% of GDP requires a 40% tax rate, but considers that the UK's tax system has complexities, including a 68% marginal tax rate due to child benefit withdrawal, that it believes, discourages some skilled workers; understands that businesses also face challenges, with many reportedly staying below the £85,000 revenue threshold to avoid VAT registration, and to qualify for lower corporation taxes, which it considers have led to a service-based economy, limited business investment and wealth inequality, due to lower capital gains taxes; considers that there is room to tax unearned income more effectively, and believes that, in a world of high public debt and increasing demand for services, voters may need to accept higher taxes, with a focus on their fairness.


Supported by: Maggie Chapman, Bill Kidd, Mark Ruskell