Buy back better: The case for raising taxes on dividends and buybacks

Article

Households are experiencing a real-terms income squeeze while some of Britain’s largest companies transfer profits to their shareholders at record levels.

Taxes on shareholder transfers should be raised to ensure that companies are not channelling profits to their shareholders at a time of national economic crisis.

This briefing paper argues that the UK government can raise revenues by increasing taxes on dividends and buybacks. This is one mechanism which will allow the government to extend support for households and businesses through the cost of living crisis without resorting to public service cuts. The government should be prioritising progressive revenue-raisers which address growing wealth inequality, rather than turning back to the austerity cuts of the past.

This briefing is published in collaboration with Common Wealth as part of our programme of work exploring profits and corporate power post-pandemic.

Related items

  1. Street scene in financial district, London

    Rule of the market: How to lower UK borrowing costs

    The UK is paying a premium on its borrowing costs that ‘economic fundamentals’, such as the sustainability of its public finances, cannot fully explain. 
  2. A mother and child from behind looking out of a window

    Restoring security: Understanding the effects of removing the two-child limit across the UK

    The government’s decision to lift the two-child limit marks one of the most significant changes to the social security system in a decade.
  3. A group of healthcare professionals sitting in a staff common room in a hospital in Newcastle

    Building a healthier, wealthier Britain: Launching the IPPR Centre for Health and Prosperity

    Following the success of our Commission on Health and Prosperity, IPPR is excited to launch the Centre for Health and Prosperity.