Daily Archives: May 31, 2012

Devolved taxes

I’m trying to work out (very roughly) the balance between reserved and devolved taxes for the second edition of Scottish Politics.  Here is a rough and ready calculation based on the last (UK) Treasury budget estimates of receipts, which can be found here and here

Income tax 155, 26%
National Insurance 106, 18%
Excise duties 48, 8%
Corporation tax 45, 8%
VAT 102, 17%
Business rates 26, 4%
Council tax 26, 4%
Other 84, 14%
Total 592

The ones to watch are: the devolved business rates/ council taxes (only 8%); the difficult-to-devolve corporation and VAT (25%); the quite-low income tax (26%, or 25% if we include tax credits); and, National Insurance (18%) which helps keep the appearance of income tax low (it is a tax on employment income, and an indicator of entitlement to certain benefits, but goes into the same pot).

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