Lostrevenues?

Your headline “SNP tax rise could cost Scotland £20m in revenues” (Saturday, 7 April), based on analysis by the Institute of Fiscal Studies, deserves discussion. The IFS identifies the risk of a small number (less than 20) of high earners choosing to move their tax domicile south of the Border to avoid additional taxation. The result would be a loss to Scotland of all of the income tax paid by these individuals.

That conclusion seems based on the assumption that each of these taxpayers would prioritise paying less tax personally over other factors such as quality of life, access to potentially better-funded services, supporting greater distribution of wealth, and so on. Is there evidence to support that assumption? Is it possible, for example, that 20 high earners in England might choose to move north to support the different tax regime, generating more tax revenue in Scotland? If not, why not?

We could miss the opportunity for a really healthy dialogue about taxation. Taxation is one way to address the apparently increasing gap between rich and poor. Why assume that this is always to be viewed negatively by high earners? Is everyone really driven to maximise their own income? Really?

The crux may be confidence that additional tax revenues will be well spent. Recent reports test that confidence. The key is likely be demonstrating efficiency and effectiveness in delivery of public services without expecting perfection. Perhaps that is Scotland’s real challenge?

JOHN STURROCK Claverhouse Drive, Edinburgh