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Taxes and the Tory Leadership Election

The Conservative Party in the United Kingdom is in the process of determining its new leader as Prime Minister Boris Johnson exits the stage. The new Conservative Party leader will be the next UK Prime Minister. The process has narrowed the field to two candidates: former Chancellor of the Exchequer Rishi Sunak and Foreign Secretary Liz […]

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Policies Critical to Economic Recovery Set to Expire Soon

At a moment when we are seeing clear weaknesses in supply chains and needs for gearing production toward more environmentally friendly approaches, capital investment is critical. Policymakers have an opportunity to change a coming decline in investment incentives by adopting permanent policies to support growth. Expiring tax policies in major economies could create a setback […]

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Marginal Effective Tax Rates and the 2021 UK Budget

Table of Contents Key Findings The 2021 UK budget introduces a two-year super-deduction of 130 percent for plant and equipment and a delayed corporate tax rate increase from 19 percent to 25 percent in 2023. These policies have differential impacts on marginal effective tax rates (METRs) for different assets, implying investment incentives will not be […]

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Brits to Prepare for Tax Reforms

Originally intended to be presented during the fall of 2020, and postponed due to the COVID-19 pandemic, a new United Kingdom budget will finally be published on March 3. Although normally most tax rate changes come into effect on budget day or soon after, 2021’s tax reforms might need to wait. Consultations on policies that […]

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A Framework for the Future: Reforming the UK Tax System

Note: Below is a brief excerpt from our new publication with the Centre for Policy Studies, A Framework for the Future: Reforming the UK Tax System, which is a comprehensive study of Britain’s tax system that identifies key areas for improvement in UK tax policy and provides recommendations that would support long-term growth without negatively impacting government revenues. To […]

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Who will Ultimately Pay the Digital Services Tax in the UK? Amazon Passes the Cost Along to Sellers

In July, the UK’s digital services tax (DST) became law after receiving royal assent. The 2 percent tax applies to revenues from social media platforms, internet search engines, and online marketplaces. When developing tax policy, lawmakers often ignore the incidence of a tax, or who actually pays the tax. Many times, this is different from […]