<p>Corporation tax should be reformed or replaced by a higher VAT rate offset by lower National Insurance contributions) to reduce disincentives to invest in the UK, according to two studies commissioned by the Mirrlees Review of the British tax system, which is being chaired by Nobel prize-winner Professor Sir James Mirrlees for the Institute for Fiscal Studies. The studies both argue that globalisation and the growth of the financial sector require a new approach to the taxation of profits in a small open economy. </p>
Authors
CPP Co-Director, IFS Research Director
Rachel is Research Director and Professor at the University of Manchester. She was made a Dame for services to economic policy and education in 2021.
University of Michigan
Peter Birch Sørensen
Press Release details
- Publisher
- IFS
More from IFS
Understand this issue
The Spring Budget explained
16 March 2023
Taxes could be cut within broader reforms
2 November 2023
At last, we are back to a normal budget, but don’t expect many treats
13 March 2023
Policy analysis
Tax and public finances: the fundamentals
23 August 2023
Full expensing and the corporation tax base
6 October 2023
Long-term costs of full expensing much lower than official estimates suggest
6 October 2023
Academic research
Fiscal Studies, Volume 44, Issue 1
20 March 2023
Empirical evidence on the global minimum tax: What is a critical mass and how large is the substance-based income exclusion?
20 March 2023
Identifying network ties from panel data: theory and an application to tax competition
18 January 2023