Property taxes are ‘absurd’, says IFS report

“Crazy” variations in taxes are harming economic growth, the Institute for Fiscal Studies has warned. The IFS is calling for reform of council tax, inheritance tax, stamp duty and “crazy” variations in marginal income tax rates to boost the economy. Isaac Delestre, the author of the report, said a tax system like this “would be a crazy thing to propose” if it was being designed from scratch. “The way in which we tax property jumps out as an area that really does need reform,” he said. “The fact that we have council tax based on values in 1991 becomes more absurd each year.” Delestre also criticised stamp duty, which he called a “damaging tax”. “Why should someone pay much more tax if they move house three times than if they move once? The big danger is you stop people moving to the parts of country where they really want to be or where they would be most productive.” The Times (£)