Adrenalin Now – targeted, popular tax cuts to boost the economy
Given the fragile state of the UK economy, funded tax cuts and deregulation are urgently required to kick-start the economy writes Ryan Bourne in Adrenalin Now – Funded, popular tax cuts to boost the economy, published by the Centre for Policy Studies on Thursday 13 October 2011.
In the report, Bourne:
- notes that if growth is half that forecast by the OBR across this Parliament, the deficit will still be 9% of GDP by 2015
- proposes £14 billion of savings from abolishing the differential rates of pension tax relief for higher rate payers, abolishing contracting out of S2P, cutting international aid to 2010/11 spending and ending the 25% tax-free lump sum entitlement from pensions.
- recommends abolition of the 50p tax rate, and swift cuts to corporation tax, employer NICs and a £500 increase in the personal allowance above the Government’s proposed plans.
Polling undertaken for this report by ComRes shows support for many of these policies. While a majority oppose the abolition of the 50p tax band, when it is accompanied by an increase in the personal allowance, more people than not actually support the proposal.
The full pamphlet and polling results can be downloaded from here and here.
Media Impact:
Telegraph – (front page of the business section)
- Think-tank calls for tax cut to boost economy
- Drop the 50p tax rate to halt unemployment urges think-tank
ConHome:
- Tim Montgomerie: George Osborne has six weeks to save his economic policy
- Ryan Bourne: Targeted tax cuts now would aid growth and would be popular
Other media
- Daily Express – Think-tank backs £14bn tax breaks
- BBC Radio Five Live – Morning Report and TUR Radio.
- London Stock Exchange – Economy Needs Funded Tax Cuts, Deregulation -Think Tank
- City AM: UK told to cut taxes on pay and business
- Nasdaq: UK Economy Needs Funded Tax Cuts, Deregulation -Think Tank
- The Scotland – Salmond’s plan MacB is not working
- CA Mag Online: Think-tank calls for tax cut to boost growth
- Proactive Investors UK: UK told to cut taxes on pay and business
- Adv Fn: UK economy needs funded tax cuts and deregulation says think-tank
