>Deputy First Minister warns of people leaving the country if there are more increases north of the Border
…
>“The nature of tax policy in a devolved context, you just can’t get away from the reality, it’s very easy to move – it just is very easy to move.
>“We have to take into account the behavioural impact also.”
>The same is not true of independent nations, the deputy First Minister added.
>“You set tax policy at the beginning of the year, if people move, then you don’t get the money in and what you end up doing is you pay the UK Government money and it’s all very unpleasant and we have less money,” she said.
There’s been comments here and there about tax policy, and reports that Forbes and Swinney both want to avoid further rises. Other than the budget, this seems to be clearest indication of that so far
I spoke to some people in the SG tax team a couple of months back about the impact of increasing Scottish income tax.
SG economists had expected the small increases to result in close to 0 behavioural change. Scotland is heavily PAYE (where it’s harder to be flexible by fair means and foul in reducing declared income) and at that low level it was assumed few would move or retire early. It turned out the behavioural change impact was actually rather large – and that’s why the extra tax take from the increases was so feeble.
*Scottish government* and *local government* tax rises might be thought of as two separate strands. I don’t think we’ll see council tax reform happen between now and 2026, it’s too close to 2026, but the Greens have been pushing and securing new tax-raising powers for councils and the SNP might see the opportunity that comes from that.
Ah, that’s it. Higher rate taxpayers paying a wee bit extra tax, that’s the heart of the SNP’s woes. Nothing to do with the state of the NHS, failures in the education sector, the ferries fiasco….
I think folk don’t mind paying taxes if they feel they’re getting something from it
Legacy of the past few years was pretty much ‘tax anyone on median income a lot, and then spend all government time pretending that men can become women’. I pay a lot more tax than the person who does my job south of the border and see very very little benefit for it. Been a shambles.
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>Deputy First Minister warns of people leaving the country if there are more increases north of the Border
…
>“The nature of tax policy in a devolved context, you just can’t get away from the reality, it’s very easy to move – it just is very easy to move.
>“We have to take into account the behavioural impact also.”
>The same is not true of independent nations, the deputy First Minister added.
>“You set tax policy at the beginning of the year, if people move, then you don’t get the money in and what you end up doing is you pay the UK Government money and it’s all very unpleasant and we have less money,” she said.
There’s been comments here and there about tax policy, and reports that Forbes and Swinney both want to avoid further rises. Other than the budget, this seems to be clearest indication of that so far
I spoke to some people in the SG tax team a couple of months back about the impact of increasing Scottish income tax.
SG economists had expected the small increases to result in close to 0 behavioural change. Scotland is heavily PAYE (where it’s harder to be flexible by fair means and foul in reducing declared income) and at that low level it was assumed few would move or retire early. It turned out the behavioural change impact was actually rather large – and that’s why the extra tax take from the increases was so feeble.
*Scottish government* and *local government* tax rises might be thought of as two separate strands. I don’t think we’ll see council tax reform happen between now and 2026, it’s too close to 2026, but the Greens have been pushing and securing new tax-raising powers for councils and the SNP might see the opportunity that comes from that.
Ah, that’s it. Higher rate taxpayers paying a wee bit extra tax, that’s the heart of the SNP’s woes. Nothing to do with the state of the NHS, failures in the education sector, the ferries fiasco….
I think folk don’t mind paying taxes if they feel they’re getting something from it
Legacy of the past few years was pretty much ‘tax anyone on median income a lot, and then spend all government time pretending that men can become women’. I pay a lot more tax than the person who does my job south of the border and see very very little benefit for it. Been a shambles.