Cutting labour taxes boosts UK growth, but welfare suffers from capital cuts
The UK tax system can affect economic growth and people's well-being. By analyzing data from 1970 to 2005, researchers found that reducing taxes on labor while increasing taxes on capital or consumption can help boost long-term growth. On the other hand, cutting taxes on capital while raising taxes on labor or consumption can improve welfare. This suggests that changing the tax mix can have different effects on the economy and people's lives.