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What can America learn from the British tax system?

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  • William Gale

Abstract

This paper examines elements of British tax policy and discusses their implications for the US, where several recent proposals would mirror aspects of the British system. These include reducing filing requirements under the individual income tax, indexing capital gains for inflation, cutting mortgage interest deductions, enacting a value added tax, and integrating the corporate and personal income taxes. The paper also discusses implications of the poll tax for tax reform. Britain and America have made different choices involving equity, efficiency, simplicity and other goals. These choices offer the chance to help identify the impact of tax policy.

Suggested Citation

  • William Gale, 1997. "What can America learn from the British tax system?," Fiscal Studies, Institute for Fiscal Studies, vol. 18(4), pages 341-369, November.
    • Handle: RePEc:ifs:fistud:v:18:y:1997:i:4:p:341-369
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    References listed on IDEAS

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    1. Besley, Timothy & Preston, Ian & Ridge, Michael, 1997. "Fiscal anarchy in the UK: Modelling poll tax noncompliance," Journal of Public Economics, Elsevier, vol. 64(2), pages 137-152, May.
    2. Michael Keen, 1997. "Peculiar institutions: A British perspective on tax policy in the United States," Fiscal Studies, Institute for Fiscal Studies, vol. 18(4), pages 371-400, November.
    3. Gale, William G. & Holtzblatt, Janet, 1997. "On the Possibility of a No-Return Tax System," National Tax Journal, National Tax Association;National Tax Journal, vol. 50(3), pages 475-485, September.
    4. Smith, Peter, 1991. "Lessons From the British Poll Tax Disaster," National Tax Journal, National Tax Association;National Tax Journal, vol. 44(4), pages 421-436, December.
    5. Gale, William G. & Holtzblatt, Janet, 1997. "On the Possibility of a No-Return Tax System," National Tax Journal, National Tax Association, vol. 50(3), pages 475-85, September.
    6. Poterba, James M. (ed.), 1994. "Public Policies and Household Saving," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226676180.
    7. Smith, Peter, 1991. "Lessons from the British Poll Tax Disaster," National Tax Journal, National Tax Association, vol. 44(4), pages 421-36, December.
    8. James Banks & Richard Blundell, 1994. "Taxation and Personal Saving Incentives in the United Kingdom," NBER Chapters, in: Public Policies and Household Saving, pages 57-80, National Bureau of Economic Research, Inc.
    9. Michael Keen, 1997. "Peculiar institutions: A British perspective on tax policy in the United States," Fiscal Studies, Institute for Fiscal Studies, vol. 18(4), pages 371-400, November.
    10. Joel Slemrod & Jon Bakija, 2008. "Taxing Ourselves, 4th Edition: A Citizen's Guide to the Debate over Taxes," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262693631, April.
    11. Burman, Leonard E & Randolph, William C, 1994. "Measuring Permanent Responses to Capital-Gains Tax Changes in Panel Data," American Economic Review, American Economic Association, vol. 84(4), pages 794-809, September.
    12. Orazio Attanasio & James Banks, 1998. "Trends in household saving: a tale of two countries," IFS Working Papers W98/15, Institute for Fiscal Studies.
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    Cited by:

    1. Paul Gregg, 2008. "UK Welfare Reform 1996 to 2008 and beyond: A personalised and responsive welfare system?," The Centre for Market and Public Organisation 08/196, The Centre for Market and Public Organisation, University of Bristol, UK.
    2. Mike Brewer & Paul Gregg, 2001. "Eradicating child poverty in Britain: welfare reform and children since 1997," IFS Working Papers W01/08, Institute for Fiscal Studies.
    3. Michael Keen, 1997. "Peculiar institutions: A British perspective on tax policy in the United States," Fiscal Studies, Institute for Fiscal Studies, vol. 18(4), pages 371-400, November.
    4. Kaplanoglou, Georgia & Newbery, David Michael, 2003. "Indirect Taxation in Greece: Evaluation and Possible Reform," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 10(5), pages 511-533, September.
    5. Mike Brewer, 2000. "Comparing in-work benefits and financial work incentives for low-income families in the US and the UK," IFS Working Papers W00/16, Institute for Fiscal Studies.
    6. Michael Keen, 1997. "Peculiar institutions: A British perspective on tax policy in the United States," Fiscal Studies, Institute for Fiscal Studies, vol. 18(4), pages 371-400, November.
    7. Steven C. Bourassa & Ming Yin, 2008. "Tax Deductions, Tax Credits and the Homeownership Rate of Young Urban Adults in the United States," Urban Studies, Urban Studies Journal Limited, vol. 45(5-6), pages 1141-1161, May.

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    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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