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Policy Briefs

Universal Contributions

Abstract

G7 countries will need to better align their tax systems with social protections to create the reciprocity necessary to support stronger social cohesion.

 

A combination of tax simplification and direct assignment of revenues from private taxes to universal protections creates a sustainable fiscal structure that enables stronger cohesion.

 

Amidst the rising cost of living, post-pandemic recovery and the urgent need to meet net zero requirements, our proposals for tax reform and implication provides a clear example of how such reforms using analysis from a G7 country such as the UK can foster greater social cohesion and solidarity. We argue that using a flat rate definition of incomes where both active (earned) and passive (unearned) incomes are treated equally forms the basis of a more socially just and equal society.