This report reviews international evidence on the effect of capital gains tax rises on government revenues, finding that tax rises tend to decrease revenues while tax cuts tend to increase them. It suggests that aligning CGT rates with income tax, as the UK government has proposed, would significantly hit revenues and worsen the deficit, as well as discouraging much needed investment. It also refutes the idea that CGT is primarily a tax on the rich, suggesting instead that CGT hikes will hit ordinary families and – in particular – retirees. Finally, the report describes the idea that people can easily shift income to capital gains and thus avoid taxes as a theory in search of some evidence, pointing to numerous countries with high income taxes and low capital gains taxes where this does not seem to be problem.
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.
- Introduction by Richard Wellings
- The importance of liberty by JC Lester
- How markets work by Eamonn Butler
- Free trade by Daniel Griswold
- Taxation and government spending by Daniel J. Mitchell
- Property rights by Karol Boudreaux
- Why government fails by Peter J. Boettke & Douglas B. Rogers
- Sex, drugs and liberty by John Meadowcroft
- Welfare without the state by Kristian Niemietz
- Banking, inflation and recessions by Anthony J. Evans
- The role of government by Stephen Davies
This short book is an accessible introduction to liberty – one of the key concepts of political and economic thought. It explains why liberty is so important and sets out in clear language the benefits of freeing individuals from big government. The guide consists of ten concise chapters, each focusing on a particular aspect of liberty and written by an expert in the field. The authors show why liberty is essential if people are to lead prosperous and fulfilling lives, and also point to the terrible consequences when politicians and officials get too much power. At a time when our freedom is threatened by a rising tide of government controls, A Beginner’s Guide to Liberty is essential reading.
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