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The Progressive Policy Think Tank
IPPR North IPPR Scotland

Just tax: Reforming the taxation of income from wealth and work

The UK is one of the most unequal countries in the developed world, and income inequality could be set to worsen as capital and property ownership become more important sources of income generation. Redistribution is essential for economic justice.

It is profoundly unjust that those who work for their incomes are taxed more highly than those whose income is derived from wealth. This situation is all the worse when we consider that the wealthiest are less likely to generate their income from labour than the rest of us. Among the richest 1 per cent, over one-quarter of total income is generated from dividends and partnership income alone. Economic justice demands change.

This briefing paper focusses on two sets of proposals designed to make the taxation of income simpler, more progressive and better able to raise public money. The proposals are united by the principle that income, regardless of source, should be taxed equally across individuals.

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