Scottish Tax Hikes on High Earners May Reduce Revenue, IFS Warns

Economists caution that increased income tax rates could lead to decreased work and migration, potentially lowering overall tax revenue.

The Institute for Fiscal Studies advises the Scottish Government to reconsider further income tax hikes on high earners, citing potential negative effects on revenue.
Analyses suggest that higher tax rates have prompted some of Scotland's highest earners to leave or find legal tax avoidance methods.
Scotland's current tax rates mean individuals earning £125,000 pay over £5,200 more than their counterparts in England.
Data from 2018-19 indicates that previous tax increases might have reduced revenue due to behavioral changes among taxpayers.
The upcoming Scottish Budget, set for December 4, will reveal the proposed income tax rates for 2025/26.