Posted by Tax Innovations on 19 Oct 2011
Centre for Policy Studies says Abolish 50p Tax Rate
Leading think tank The Centre for Policy Studies (CPS) has released a report saying that it believes the British economy needs to stimulate growth by cutting tax.
The CPS report is titled “ADRENALIN NOW – funded, popular tax cuts to boost the economy” and states;
“The best approach to boost growth is (therefore) to improve our competitiveness through lowering specific taxes and undertaking regulatory reform.”
The CPS report puts forward the view that the Coalition Government’s deficit reduction plans are considered credible by the markets and that the best approach is to boost growth through lowering specific taxes and undertaking regulatory reform.
They say that funding of the tax cuts can be provided by cutting international aid budgets and by reform of the pensions system.
They claim that the reforms they put forward would save over £14 billion pounds and enable the Government to make the following tax cuts:
- Reduce the main rate of corporation tax by an additional 4% in the year 2012/2013.
- Reduce Class 1 employer NIC’s to 12%.
- Encourage small business growth through NIC holidays.
- Remove the 50p income tax rate.
- Potential abolishment of stamp duty on share transactions.
The CPS go on to point out that a strong pro-growth message needs to be heard nationally and internationally and that the proposals should be treated as the first steps towards further tax reductions.
The full CPS report can be viewed on Adrenalin Now.
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