“Brexit” Will Raise taxes by GBP400
May 25, 2016 Taxation in UK
LONDON – If the UK leaves the EU, taxes in the country will need to be raised, resulting in a post-tax wage drop of 2 percent.
The results of a new study published in May 23rd by the UK-based National Institute of Economic and Social Research show that taxes in the UK would need to be raised if the country choses to leave the EU.
If the UK were to leave the EU, the level of migrants coming to the UK from other EU countries would drop significantly.
The models used in the study indicated that the drop in migration would result in an increase in the portion of the population which are either too old or too young to work, placing a much greater reliance on collecting taxes from the diminished working population.
Leaving the EU would also result in a 9 percent drop in GDP, and a 1 percent drop in GDP per capita by the year 2065.
The dropping economic activity will require the government to raise taxes by as much as GBP 400 per person in the UK, in order to maintain the same level of public spending.
If the tax hikes are implemented, the overall result of leaving the EU would be a 2 percent drop post-wage taxes of taxpayers in the UK.
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