Part 6/14:

• Trust and Fairness: Citizens are more likely to accept taxation when the rules are clear and perceived as fair.

• Efficiency: Reducing loopholes and carve-outs would make tax collection less resource-intensive, shrinking HMRC and freeing up government resources.

Current multi-page tax codes—approaching 25,000 pages—are an enormous administrative burden, fostering avoidance and compliance costs, and undermining trust in public institutions.

The Fiscal Imbalance and Wake-Up Calls

Presently, the UK’s tax burden is nearing 38% of GDP, comparable to historic postwar highs. This levels out around the 20-30% range in other advanced economies, which academic research suggests is optimal for welfare or growth maximization.