La réorientation du système fiscal britannique (1979-1986)

Abstract

The reorientation of the british tax system (1979-1986), by Jean-Jacques Santini. A number of studies carried out in the United Kingdom in the 1970s seemed to indicate that the British tax system led to distortions in resource allocation which were prejudicial to the operations of the economic system. In the light of these findings, when Mrs Thatcher's government came to power in 1979 it immediately brought in a tax reform policy. The measures included in this policy, which were numerous and often far- reaching, affected taxes on households as well as company taxation. The study presented here describes the various measures complemented and attempts to judge their possible impact on the British economic system. Although it is still difficult to draw up a conclusive report on the results of this tax reform policy (which is not yet complete, several of the projected reforms having not yet been implemented, and which includes structural alterations which are slow to alter behaviour), three conclusions seem to stand out: the réorientation of the fiscal system since 1979 has been a major one, as can be seen from the change in the spread of taxation over households and companies on the one hand and the respective weight of direct and indirect taxation on the other; the short-term impact of the reforms introduced has sometimes been quite marked, whether positive (as in the case of the investment tax reform carried out between 1984 and 1986) or negative (the increase in direct taxation introduced in 1979); generally speaking, the British tax system seems better oriented now than in 1979 with regard to the achievement of economic policy objectives: the incentive to work has been increased, financial savings should progress and be better oriented towards productive investment, the quality of investment should improve and employment should be encouraged. JEL: 321