Scotland’s increasingly progressive tax system may force richer residents to move across the border into England, where taxes for higher earners are lower, a think tank has warned.
Under the Scottish government’s draft budget for 2023–24, initially announced in December, taxes on the highest earners in Scotland will increase in response to rising inflation.
Changes announced as part of that budget will see higher rate taxpayers in Scotland earning £43,663 ($53,032) a year or more paying tax at 42 pence instead of 41 pence, while top earners on £125,140 or more will pay income tax at 47 pence, up from 46 pence.
The rises are being introduced as part of an ongoing policy from the ruling Scottish National Party (SNP) that seeks to reduce taxes for the lower paid, while asking wealthier citizens to contribute more to raise additional cash to help fund public services….