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To tax or not to tax?

Chris Sanger reflects on the constraints which may shape the Coalition's vision for the future tax system

To tax or not to tax? That is the question facing any government and one of the key questions facing an incoming government that has been out of power for some time. Who and what is taxed and indeed how that tax is calculated and administered can be part of the fundamental ethos behind an administration. Now that the so-called ‘emergency’ Budget has passed it is a good time to reflect on the constraints imposed on the UK’s future tax policy and the approach policy makers should take in developing the tax regime.

Governments are often judged by the tax environment that they produce but this can be unfair as the existing tax regime will by its very nature impose constraints on the options available to...

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