The fiscal response to Covid-19: 'Thinking big' on tax policy after the crisis
- Funded by UK Research and Innovation (UKRI)
- Total publications:0 publications
Grant number: ESRCCOVID101
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Key facts
Disease
COVID-19Known Financial Commitments (USD)
$128,094.42Funder
UK Research and Innovation (UKRI)Principal Investigator
PendingResearch Location
United KingdomLead Research Institution
London School of Economics and Political ScienceResearch Priority Alignment
N/A
Research Category
Secondary impacts of disease, response & control measures
Research Subcategory
Economic impacts
Special Interest Tags
N/A
Study Type
Non-Clinical
Clinical Trial Details
N/A
Broad Policy Alignment
Pending
Age Group
Adults (18 and older)
Vulnerable Population
Unspecified
Occupations of Interest
Other
Abstract
Covid-19 is placing extraordinary pressure on public finances. The short- and long-term responses to the crisis will need to be matched by a transformative fiscal settlement for the UK. So far, there has been a lack of 'big thinking' on tax policy to match the scale of this challenge. Reforms to existing taxes are necessary, but may be insufficient._x005F_x000D_ This project convenes a network of world-leading tax experts to provide rapid-response evidence and recommendations to government on the case for introducing a new 'wealth tax' for the UK. Unlike many other OECD countries, the UK has never had a wealth tax; the last time this policy was seriously considered was in 1974._x005F_x000D_ The project will ensure that this policy option is 'on the table' in upcoming fiscal debates about the national recovery from Covid-19, by:_x005F_x000D_ WP1: Creating an evidence base - we have already commissioned eleven 'evidence papers' on key principles and design issues. These papers will provide a detailed and robust new evidence-base that can be used directly by officials at HM Treasury and HMRC._x005F_x000D_ WP2: Modelling revenue and distributional impacts - we are using state-of-the-art quantitative methods and the best-available data sources to model how much revenue a wealth tax could raise, and its impact on the distribution of wealth, based on a range of policy options._x005F_x000D_ WP3: Providing policy recommendations - we will publish a final report summarising our conclusions on the feasibility and design of a new wealth tax for the UK, including (if appropriate) a fully-costed 'ready to legislate' proposal._x005F_x000D_ If funded, we will deliver all of these work packages - including the final report - by December 2020, in time to feed into the Budget and associated fiscal debates occuring in Spring 2021.