Report Finds Scrapping Capital Gains Tax Would Make Families £1,000 Better Off
While Labour continues to reverse its pre-election definition of “working people” to justify tax hikes, the Adam Smith Insitute offers another path for raising money from Capital Gains Tax. Scrap it…
Statistical modelling in the ASI’s new report suggests that national income would grow by £25.08 billion thanks to increased saving if CGT was gradually phased out. Further revenue increases from higher investment and productivity would more than replace revenue lost from CGT and boost growth…
Without Capital Gains Tax national income would, according to the modelling, rise by 0.9% annually, in perpetuity. That’s thanks to a 2.4% increase in national savings as a percentage of national income. Bean-counters will know that two-thirds of the lost revenue from scrapping the tax would be offset by increased revenue from other taxation as a result. Multiplier effects to growth would more than compensate for lost Treasury revenue while every family would be £1,000 a year better off…
Reeves should rule out a rise in CGT in the budget, and better still scrap it altogether. Talk about a rabbit…
