Raising Taxes Will Not Work
Writing in the Times, Mark Littlewood, director-general of the Institute of Economic Affairs, outlines why it would be a mistake for the Chancellor to raise taxes in next month’s Budget. He says people will swiftly amend their behaviour in a myriad of clever ways to take account of whatever new, cunning taxes our politicians seek to impose upon us. He suggests that upping the top rate of income tax will lead higher earners to reconsider their behaviour. For instance, a few higher-earners might seek to retire earlier, strive a little less in seeking to increase their salaries to still higher levels, or even perhaps emigrate to Hong Kong.