Following today’s news in The Times that the government is planning a stamp duty cut in Friday’s mini-budget, research from the Taxpayers’ Alliance (TPA) has revealed the benefits this would provide. The TPA’s dynamic tax model forecasts that stamp duty will continue to have a deleterious effect on growth, investment and average weekly earnings if the current system remains in place. Without stamp duty, GDP would be £27 billion higher by 2029, investment would rise by £7 billion and average weekly wages by £6.
This comes about through the more efficient allocation of resources, which would include help to first-time buyers entering the market. John O’Connell of the TPA adds:
“Stamp duty is a highly destructive tax, harming economic growth by impacting decisions like downsizing or moving for a new job. Cutting stamp duty must be part of a menu of measures at Friday’s mini-Budget to help get the economy moving and ease the pressure on taxpayers struggling with the cost of living.”
It’s a no brainer…