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FT.com: Will taxpayers end up in a jam tomorrow?

28 May 2010

The Financial Times reports on our findings that increases in CGT rates would do damage to the economy.

Article published in full in FT.com here. 

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The Times: Hammered: the savers who did the right thing

26 May 2010

The Times reports on our finding that increasing CGT rates in other countries has led to falling tax revenues.

Published in The Times here.

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John Redwood's Diary: Tax the rich by cutting the rate

25 May 2010

John Redwood MP writes on our findings that higher CGT rates do not mean higher tax takes at his personal blog, John Redwood's Diary.

Published in John Redwood's Diary here. 

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ConservativeHome: Madsen Pirie on Platform on why the Coalition should rethink its plan to raise capital gains tax

25 May 2010

Madsen Pirie argues at ConservativeHome that the Coalition's plan to increase CGT rates is poorly thought out and should be dropped immediately.

Published in ConservativeHome Platform here. 

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Georgian Times: WSJ exmplifies Georgia as reformer in economic sector

25 May 2010

The Georgian Times reports on Eamonn Butler's praise of Georgia as a model of reform.

Published in the Georgian Times here.

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City AM: Do these cuts go far enough?

25 May 2010 

Eamonn Butler argues that the cuts packaged announced is a step forward, but what is really needed is a reform of government at large in City AM.

Extract from City AM published here. 

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Reuters TV: Madsen Pirie on government spending cuts

 24 May 2010

Dr Madsen Pirie appeared on Reuters TV discussing the £6.2 billion of spending cuts laid out by the coalition government.

Published on Reuters TV here.

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Sunday Telegraph - Letters to the editor

23 May 2010

ASI fellows Tim Worstall and Sam Bowman both had letters published in the Sunday Telegraph on Capital Gains Tax and DFiD. 

Published in the Sunday Telegraph here. 

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Boston Globe: Saved by the crown

23 May 2010

The Boston Globe reports on Eamonn Butler's comments that we should have a Monarchy willing to act as a check the other parts of government.

Extract from article published in the Boston Globe here. 

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Yorkshire Post: Capital gains: Think-tank claims tax rise will reduce Treasury's take

22 May 2010

The coalition Government's proposal to put up capital gains tax will result in less revenue for the Treasury, says a Right-leaning think-tank.
The Adam Smith Institute says increasing capital gains tax will widen the deficit rather than narrow it.

The Conservatives and Liberal Democrats have agreed to tax non-business capital gains at rates "similar or close to those applied to income". This means the tax could be increased from its current level of 18 per cent to 40 per cent or even 50 per cent, depending on the level of income tax people pay.

But in a report published today, the institute says investors believed the measure would be temporary and would therefore defer capital gains realisations until the rate reduced again. This would lead to a "sharp decline" in tax revenues.

Its president, Madsen Pirie, said: "In intending to tax the rich, politicians, without understanding the effects of their actions, are proposing measures which will decrease the Treasury's tax take and make the deficit even worse. This hardly qualifies as sensible economic policy."

The report found that capital gains tax rises in the United States and Australia had led to reductions in revenue. Conversely, decreases in the tax led to rises in revenue.

The institute said it was "highly likely" that these negative revenue effects of a rise in the tax would be more accentuated in the UK because investors realised there was a "cited short-term need" to raise revenues to pay down debt.

Any increases in the tax would be introduced largely for political reasons and not as a result of evidence-based policy-making.

Investors also understood that the "major party within the coalition does not believe in the CGT tax increases and will seek an early opportunity to reverse them".

The institute said revenues fall when the capital gains tax rate rises because they are "voluntary taxes", unlike income taxes.

The report said: "While everyone needs to work and bring in an income, the same is not true of making capital gains.

"No one needs to pay capital gains taxes except in times of financial distress. Taxpayers can simply avoid selling assets that are subject to the tax and also avoid buying assets that are subject to the tax." 

Published in Yorkshire Post here.

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