The Treasury select committee has announced:
TREASURY COMMITTEE LAUNCHES INQUIRY INTO THE FUNDAMENTAL PRINCIPLES OF TAX POLICY
In the last month, the OECD in Paris and the IFS in London have each published important reports into the fundamentals of tax policy.
The OECD reports that the tax system should distort economic incentives as little as possible and that "corporate taxes are the most harmful type of tax for economic growth, followed by personal income taxes and then consumption taxes, with recurrent taxes on immovable property being the least harmful tax."
The Mirrlees Review, published by the IFS, argues that the tax system should be considered as a whole with the benefit system, seek neutrality, and achieve progressivity as efficiently as possible.
The Office of Tax Simplification has revealed that there are over 1,000 reliefs in the UK tax system.
The Treasury Committee has decided to launch its own inquiry into the principles which should underpin the tax system, and invites written evidence on the following points:
* What are the key principles which should underlie tax policy? * How can tax policy best support growth?
* To what extent should the tax system be structured to support other specific policy goals? * How much account should be taken of the ease and efficiency with which a particular tax can be imposed and collected? * Are there aspects of the current tax system which are particularly distorting?
I feel a report coming on. The deadline is 12 noon on Friday 14 January 2011. That looks like Christmas is cancelledâ€šÃ„¶..