An introduction to taxation
Think tank: Institute of Economic Affairs
Author(s): Eamonn Butler
July 23, 2024
This report from UK think tank the Institute of Economic Affairs explores the principles that would define a better and simpler tax system.
Taxation may be necessary to fund public services, but policymakers must consider its moral and economic costs.
Most taxes are overly complex, politically skewed, and often cause more economic harm than good.
Corporation and capital gains taxes are the most damaging, followed by transaction (like Stamp Duty), income and payroll taxes. Broad-based consumption and land taxes, followed by co-payments and Pigovian taxes, are the least damaging.
Tax reform and reductions require restraining government spending.
