A tax system for Scotland

Scotland is different from the rest of the UK in some ways that are important for tax system design. Incomes are more equally distributed, for example. That is one reason why the progressive income tax currently raises less per head in Scotland than in the rest of the UK. It also suggests that there is less to be gained in terms of redistribution from sharply progressive taxation.  In 2011–12, with 8.4 per cent of the UK population, Scotland contributed 9 per cent of UK onshore corporation tax. These facts show that a tax system designed for Scotland's economic and social objectives will provide benefits.