The Chancellor has asked the Office for Tax Simplification to undertake a review of Capital Gains Tax (CGT) to ‘ensure the system is fit for purpose’ and to look again at how capital gains are taxed compared to other types of income. But should he go further and simply abolish CGT completely? Philip Booth, the IEA’s Senior … Continue reading IEA Debate: Should Capital Gains Tax be abolished?
Category: Applied economics
Is the UK still on track for a V-shaped recovery?
The lacklustre GDP data in May have put a significant dent in hopes of a rapid turnaround in the UK economy, but I’m not going to bin my relatively optimistic forecasts just yet. I still expect the shape of the recovery to look roughly like a 'V', with GDP back close to pre-Covid levels by … Continue reading Is the UK still on track for a V-shaped recovery?
Are 9.3 million people really still on furlough?
One of the biggest threats to the economic recovery is a second wave of job losses as the government’s job retention scheme (JRS) is wound down. The Resolution Foundation has some good analysis here. Nonetheless, the headline figure of 9.3 million for the number of jobs that have been supported by the JRS may overstate … Continue reading Are 9.3 million people really still on furlough?
‘V’ for recovery!
The recovery in the UK economy is already taking shape nicely – and the shape looks increasingly like a ‘V’, where activity 'bounces back’ quickly and returns to more normal levels much sooner than most currently expect. Despite this, many commentators are still pessimistic and even eager to emphasise the downside risks. It is time … Continue reading ‘V’ for recovery!
Plain-speaking Economics 