Art Laffer urges new UK government to slash taxes and simplify the system

Economist Art Laffer told the British press that excessive taxation is holding back the economy and recommended major cuts and simplification.

Art Laffer, famed for the Laffer Curve, addressed the United Kingdom’s new left-wing leadership, arguing that the nation’s tax regime is overly punitive and stifles growth. He highlighted the exodus of wealthy individuals to the United States and suggested that reducing the highest income tax bracket would encourage their return. Laffer also called for a shift to a flat tax structure free of deductions, the abolition of inheritance (death) taxes, and the removal of stamp duty on property transactions.

He described the inheritance tax as “the most immoral tax” and warned that stamp duty hampers labor mobility and housing market fluidity. While praising Prime Minister Andy Burnham’s rhetoric, Laffer noted that the premier is being urged to raise, not cut, top rates and to consider a wealth tax. The economist reiterated that lower rates on the rich can increase overall revenue by reducing avoidance and stimulating the broader economy.