讲解 BE142: TAXATION POLICY AND PRACTICE 2024/2025调试数据库编程

BE142: TAXATION POLICY AND PRACTICE

Coursework SP 2024/2025 (30% of final mark)

STUDENTS PLEASE NOTE:

Your work should be uploaded to FASER in one of these two formats only, either a PDF document or a WORD document.

Any other format could result in you not receiving a mark for this piece of assessment.

QUESTION

Please answer the following:

The UK government has been revising numerous tax rules recently to address a

combination of economic, social, and fiscal challenges. The lingering effects of the

COVID-19 pandemic, rising inflation, and economic uncertainty have placed significant pressure on public finances (Paterson et al., 2024). Consequently, the government seeks to increase revenue to reduce national debt, fund essential services, and maintain fiscal sustainability.

One driving factor is income inequality and the need for a fairer tax system (Limberg,

2019; Apps & Rees, 2018). Reforms, such as the abolition of the non-domiciled tax status, aim to close loopholes that disproportionately benefit high-net-worth individuals, ensuring greater equity. Simultaneously, adjustments like freezing income tax thresholds aim to

generate revenue but critiques have raised concerns about fiscal drag impacting middle- income households.

Another key goal of the UK tax reforms is to foster economic growth and competitiveness. For example, changes in corporate taxation aim to balance attracting business investment while ensuring companies contribute their fair share. The government is also addressing sector-specific issues, such as increasing the Energy Profits Levy to capture windfall gains from high oil and gas prices.

Finally, global shifts in tax policies, such as OECD-led corporate tax reforms, compel the UK to adapt its system to remain aligned with international standards. These revisions reflect a complex balancing act between fairness, efficiency, and economic recovery.

Required:

Based on the discussion above, evaluate the impact of the UK government's recent tax

policy changes announced in 2024 on individuals and businesses. Using specific examples, critically analyse whether these changes align with the principles of fairness, efficiency,

and economic growth.

In order to meet the learning outcomes of the assessment, students are expected to address at least two key areas of reform. (e.g., National Insurance Contributions, changes to Capital Gains Tax, or the abolition of non-domiciled tax status) and provide recommendations for further policy improvements. You may organise your essay as follows:

1. Begin with an overview of the relevant 2024 UK tax policy changes.

2. Discuss the implications for different stakeholder groups, such as employees, employers, high-net-worth individuals, or small and medium sized businesses.

3. Apply theoretical frameworks like equity versus efficiency trade-offs or the Laffer curve to assess the changes.

4. Support your analysis with examples, statistics, or case studies.

5. Conclude your essay by proposing well-justified recommendations for enhancing the tax system.

List of readings/articles to serve as a starting point for developing the essay:

BE142 Core Texts

• Melville, A. (2024), Taxation: Finance Act 2024, 30th Edition, Harlow, England: Pearson. [Chapter 1: Introduction to the UK Tax Systems]

• Lymer, A. & Oats, L. (2024), Taxation: Policy and Practice 2024/25 (31st Edition), Birmingham, England: Fiscal Publications. [Chapter 2: Tax Administration and

Compliance].

Suggested journal articles/ reports

Adam, S., & Miller, H. (2024). Reforming the taxation of non-doms: policy options and uncertainties.

Apps, P., & Rees, R. (2018). Optimal family taxation and income inequality. International Tax and Public Finance, 25, 1093-1128.

Chenghao, Y., Mayburov,I. A., & Ying, W. (2024). Fiscal Effects of Environmental Tax Reform.: A Comparative Analysis of China, Germany and the United Kingdom. Journal of Tax Reform, 10(2), 258-270.

Flores, L. R., Huysmans, M., & Ferwerda, J. (2024). The political business cycle of tax reforms. Public Choice, 200(1), 65-88.

Limberg, J. (2019). ‘Tax the rich’? The financial crisis, fiscal fairness, and progressive income taxation. European Political Science Review, 11(3), 319-336.

Mérand, F. (2024). The Commissioner vs the states: responsiveness and responsibility in European tax governance. Journal of European Public Policy, 31(4), 977-998.

Nembe, J. K., & Idemudia, C. (2024). Designing effective policies to address the challenges of global digital tax reforms. World Journal of Advanced Research and Reviews, 22(3), 1171-1183.

Paterson, A., Sakariyahu, R., Lawal, R., & Alabi, A. (2024). The impact of government policy responses to the COVID‐19 pandemic and Brexit on the UK financial market: A behavioural perspective. British Journal of Management, 35(1), 174-191.

Richardson, D., & Stilwell, F. (2024). Tax reform. The Journal of Australian Political Economy, (92), 189-205.

Schuster, E. P. (2024). Tax reforms decline London stock market: the untold story. European Company and Financial Law Review.

Spies-Butcher, B., & Bryant, G. (2024). The history and future of the tax state: Possibilities for a new fiscal politics beyond neoliberalism. Critical Perspectives on Accounting, 98, 102596.

Wilson, S., & Spies-Butcher, B. (2016). After New Labour: political and policy consequences of welfare state reforms in the United Kingdom and Australia. Policy Studies, 37(5), 408-425.