As the economy boomed in the early 2000s, income tax rates were reduced, tax
credits were increased and the standard rate band was widened. With the onset
of the crisis in 2007‐2008, and the collapse of revenues from capital gains tax and
stamp duty, major increases in taxes on income were introduced to sustain and
increase tax revenue.What has been the net impact of these policy changes on
marginal effective rates of tax on income? This is one of the topics examined in a
recent conference paper.
