Eboli wrote:Taxes can be raised by shifting the burden of taxes with high economic burden to those with an inelastic burden (the most inelastic of which is a Land Value Tax) without affecting GDP. As CGT has one of the highest tax burdens I see no merit (and no money) in raising it. Indeed the late Alistair Darling chose 18% in 2007 because it was near the optimal revenue-raising rate. In short I see little money in the long term in CGT and wealth taxes.
Not least because CGT and IHT is easy to avoid. And wealth is easy to hide, relocate or both.
The most effective taxes are those that cannot easily be avoided or evaded. That is income tax (especially under PAYE), NI, VAT and property based taxes like council tax and stamp duty. The rest is fluff.