Reliance on the richest threatens economy
The OBR has warned that Britain’s economic security is being put at risk by the growing reliance on taxing the wealthiest. Its Fiscal Risks Report says that over the past decade, the proportion of income tax paid by the top 1% has risen from 24.4% to 27.7%. It warns this "reliance" on a small number of people paying so much tax has made the economy more "vulnerable" to financial shocks. Other tax risks identified by the OBR include: the impact of Brexit on the UK’s “tax-rich” financial sector; the continuing rise in self-employment; possible declines in fuel and stamp duty; and the prospect of a Brexit ‘divorce bill’.
Source: The Daily Telegraph (14/07/2017)