Time for Redistribution of Income: The Case for a Scottish Service Tax

摘要: 1. Introduction This paper is policy orientated and grew out of research funded by the Scottish Socialist Party. The idea a Service Tax has been adopted as key component their social economic strategy. Based in wider debates about land reform value taxation, discussion on tax was first independent debate Parliament. Additionally, authors were requested to make submission presentation Executive's local government committee finance so informing public debate. At time 2001 Westminster General Election letter twelve leading economists Scotland caused much controversy 'Prescott punch' with call for fiscal autonomy. They motivated constraints imposed more rigorous application Barnett formula (Heald Geaughan 1999). These restraints squeezes are restricting ability Parliament address problems health, education, housing, poverty jobs. Given devolution settlement, proposals outlined this seek introduce progressive, redistributive system way tackling under-investment sector abolition council tax. Whilst focused providing potential solution issues under-funding within principles involved will be relevance other devolved economies. 2. needs: services inclusion Without doubt 2000 uncovered series indications that quality life suffered from underinvestment many years. Across transport, housing it become increasingly clear need major attention if Britain not fall even further behind our continental partners. While have cut, throughout there evidence worsening skills shortages short-term labour market effects wage restraint exacerbated deterioration working conditions. Long-term now being generated staff, infrastructure equipment, made worse use private initiative (PFI) public-private partnerships (PPP), which reduce funds available re-investment future. deprivation towns, cities rural communities catalogued severe endemic (Scottish Executive 1999a). new definition poverty, terms exclusion, allows linking complex set associated problems, including unemployment, poor skills, low income, high crime environments, bad health family breakdown. It therefore affected defined failings these themselves under great strain. Each affects people Scotland: * 21,500 unemployed claiming benefit than year poorest districts lowest activity rates, concentrated large old industrial well 108,000 claimant late 2000, 216,000 want job but cannot find one (Labour Market Statistics, ONS, January 2001) 4,000 young leave school every without any Standard Grades 1.2 million Scotland, 25% population, live households whose income less half national average an estimated 34% children 41% under-5s such low-income houses suffer dampness and/or condensation. 3. Who pays? over last two decades community who lost through changes systems. …