Scottish Independence – Tax Powers

All three main Westminster parties have pledged to devolve some tax raising powers to Scotland after a No vote.

We already are able to vary income tax and no government in Holyrood has taken this on because by itself it is a poisoned chalice. If Westminster were devolve all types and rates of tax keeping only some universal federal taxes to pay for defence and foreign affairs then that would be worthwhile having. An increase in one tax rate can be offset by lowering another and in this way a fine tuned tax regime can be achieved that suits our internal needs.

As it is, these a weasel words from the Conservatives, their cronies and Labour because they know full well that a future Scottish government would be shooting itself in the foot if it were to increase a single tax rate. What is more I suspect that Westminster would devolve one or two taxes and scrap the Barnett formula. In other words they can immediately point to a high spending, high taxing regime North of the Border

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2 thoughts on “Scottish Independence – Tax Powers

  1. Pingback: After Shock of the Scottish Referendum | Questions and Reflections

  2. Pingback: Better Together? | Questions and Reflections

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