Once again, tax is in the news. A fierce debate is raging about the wisdom of the 50 per cent top rate of income tax, while the Coalition government is committed to raising the income tax personal allowance to £10,000.
This paper considers the arguments for three specific proposals for reforming the personal tax system. It assesses both the economic basis for these proposals and the extent to which they could promote greater social justice by contributing to a more progressive tax system.