International evidence suggests clearly that increases in capital gains taxes above a very modest level result in decreases in revenue. Similarly, if capital gains tax rates are set above a relatively modest level, then their reduction will involve an increase in revenues. This paper uses new evidence from Ireland, Sweden and Switzerland combined with existing analysis from America, Australia and Britain to try and identify more precisely the revenue consequences of CGT increases in the UK. It looks at both revenue losses from capital gains tax and from other taxes.
In 'Re-Booting Government: How to deal with the deficit without cutting vital services', Dr Eamonn Butler argues that reducing deficits and debt is essential. Debt imposes a large interest-payments tax on citizens, limits the options open to governments, and it weakens political leaders both at home and abroad. But in the long run, a cheese-slicer approach to cutting spending is not going to be enough. We need to completely rethink the role of the state, what it does, and how it does it. In short, we need to reboot government.
In 'An international development policy that works: Why the Conservative Party should rethink its commitment to development aid' Sam Bowman argues that the UK Conservatives have failed to propose the radical policy overhaul needed to make the Department for International Development (DFID) an effective body. He suggests scrapping the pledge to spend 0.7% of national GDP on international development aid each year, and focusing instead on private donations, economic migration and unilateral tariff reduction.