‘Isn’t there a case for looking at the whole system at some point?’ whispered Isabel on Tuesday when MPs criticised the taxman again. Well, yes, there is.
Last May, the 2020 Tax Commission published its final report, setting out the moral, economic and practical case for lower, simpler taxes. The Commission deliberated for 18 months before coming to a fundamental rethink of the UK tax system. It proposed to sweep away a multitude of fiddly taxes that hit the same income on multiple occasions and replace them all with a reformed, simple Single Income Tax.
Simpler taxes would mean fewer loopholes for clever accountants to exploit while freeing up HMRC staff to concentrate on the things that matter: detecting evasion and helping taxpayers to pay the right amount of tax. But lower taxes are needed, too. Firstly, to stimulate economic growth by making work pay and loosening the throttle on investment.
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