By stewartb
Candidly, this is an unworthy report from the IFS, an organisation that should stand or fall based on the rigour of its quantitative analysis and its evidence based policy pronouncements.
The piece is replete with references to statistical uncertainty, sparse data and absence of up to date statistical evidence.
It also makes reference to an HMRC study which found ‘an increase in net migration to Scotland during the period since tax policy started to diverge, including among the higher-income taxpayers whose taxes have increased in Scotland.’ And also reports: ‘these data do suggest that any migration response to Scotland’s higher taxes was not big enough to offset fully other factors driving inflow of taxpayers – at least up to around 2½ years ago.’ (my emphasis) For the avoidance of doubt, this HMRC report seems to be the best, the most recent source of quantitative evidence.
And yet despite all of the above and more in a similar vein, the IFS still feels. justified in having this on its website:
‘The increases in Scotland’s top rate of income tax may have reduced revenues – although significant uncertainty remains
‘Comment: Scotland’s income tax rises have likely increased tax avoidance and migration – but the size of the effects is uncertain.’
15 November’
And for information on ‘increased tax avoidance’ there is NO empirical data anywhere on this in the IFS article: there are references only to theory and modelling.
It’s as if the IFS has chosen to write in a style which would generate mainstream media headlines. Surely not!
Previous on the IFS:
Talking-up Scotland 'Albatraz' 
You mean “the well respected think tank” and its “well respected director, Paul Johnson” surely? The latter being almost a permanent fixture at BBC Towers where he is always wheeled out to comment on things economic. Apparently there are no other economic experts around and you certainly can’t have any of the heterodox MMT’ers enlightening the plebs to the fact that the government, through its wholly owned subsidiary, the BoE, can create money by fiat, which even the BoE has admitted it can do.
So we must maintain the fiction that the (UK) Government has no money of its own and there is only “taxpayers money”. Of course the Scottish Government has no money other than the Block Grant and the little it can raise from higher taxes.
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This link to the IFS report being referred to in the above blog post may assist some readers : https://ifs.org.uk/articles/increases-scotlands-top-rate-income-tax-may-have-reduced-revenues-although-significant
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Making money for biased reporting. Controversial. On the right organisation. IFS and BBC. Spinning a yarn.
Cost of the BBC £6Billion. Enough to bring down poverty, if resources were transferred. Public monies being wasted. UK Gov sponsored propaganda. Viewership going down. Many people do not watch it. Older demographics.
Scotland raises £87Billion in taxes and revenues. Proportionally more than elsewhere in the UK. Westminster wastes too much in poor, bad decisions. Scotland outvoted 10 to 1.
On average the UK raises £800Billion in taxes. Spends £1000Billion. UK Gov claims there is a ‘black hole’. Utter nonsense. For one year less revenues which could have easily been reduced gradually. Bad UK Gov choices. The War debt was paid off to the US in 2015.
Westminster Gov claims there is no enough to cover £1.5million winter fuel allowance and reducing poverty for children. An economic advantage to save lives and cut spending.. Spending on average £1000Billion+. £50Billion in debt repayment on £200Billion borrowed. High interest rates. Something is seriously wrong? Brexit. The UK the most unequal place in the world.
UK – Scottish Gov accounts. On the internet. Looked up in 10mins. To see the wasted spending and bad decisions pending. Trident, nuclear, HS2, Hickley Point, redundant weaponry, illegal war, tax evasion, Brexit etc. Poor UK governance, NHS cuts, welfare cuts, Education cuts. Austerity mismanagement.
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More people in Scotland = more revenues. More economic activity. On average, proportionately, Scotland raises more than in the rest of the UK. On average more prosperous. Oil & Gas. Renewable energy. Better Scottish Gov policies. More (Scottish) resources being squandered by Westminster.
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The average income is £30,000. The only ones paying a wee bit more are those who can afford it. Municipal benefits. Just like in other countries.
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“It’s as if the IFS has chosen to write in a style which would generate mainstream media headlines. Surely not!”
Who might of put them up to producing this ‘SNPbaaad’ nonsence?
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