The opportunity for land and property taxes in Scotland: working paper for the commission on local tax reform

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

This paper lays out the efficiency advantages of land and property taxation over other tax instruments, but also discusses the political economy barriers to a large scale change in tax policy towards such taxes. Widespread dissatisfaction with the Council Tax and an apparent openness on the part of the Scottish Government to consider reform of local taxation, presents an opportunity for small steps in the direction of land and property taxes. We evaluate the impact, in terms of the rates required, the distributional changes induced, and the potential constituency that should be in favour, of a revenue neutral switch in taxes. This is conducted in a static, microsimulation framework, with no impacts upon house prices or upon economic activity, which is appropriate for such a small change. The conclusion reached is that such a change is progressive in that it narrows the net equivalised household income distribution, and that the property tax rate required for a revenue neutral change, approximately 0:7%, is such that there are more winners than losers.
LanguageEnglish
Title of host publicationThe Commission on Local Tax Reform
Subtitle of host publicationVolume 3: Compendium of Evidence
Pages360-399
Number of pages40
Publication statusPublished - 31 Dec 2015

Fingerprint

Land tax
Tax reform
Property tax
Local taxes
Scotland
Tax
Revenue
Openness
Layout
Tax rate
Household income
Property taxation
Income distribution
House prices
Government
Dissatisfaction
Tax policy
Economic activity
Local taxation
Microsimulation

Keywords

  • property tax
  • land value tax
  • council tax
  • optimal tax

Cite this

Comerford, D. (2015). The opportunity for land and property taxes in Scotland: working paper for the commission on local tax reform. In The Commission on Local Tax Reform: Volume 3: Compendium of Evidence (pp. 360-399)
Comerford, David. / The opportunity for land and property taxes in Scotland : working paper for the commission on local tax reform. The Commission on Local Tax Reform: Volume 3: Compendium of Evidence. 2015. pp. 360-399
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Comerford, D 2015, The opportunity for land and property taxes in Scotland: working paper for the commission on local tax reform. in The Commission on Local Tax Reform: Volume 3: Compendium of Evidence. pp. 360-399.

The opportunity for land and property taxes in Scotland : working paper for the commission on local tax reform. / Comerford, David.

The Commission on Local Tax Reform: Volume 3: Compendium of Evidence. 2015. p. 360-399.

Research output: Chapter in Book/Report/Conference proceedingChapter

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Comerford D. The opportunity for land and property taxes in Scotland: working paper for the commission on local tax reform. In The Commission on Local Tax Reform: Volume 3: Compendium of Evidence. 2015. p. 360-399