Scotland’s independent think tank
Scotland’s independent think tank

The Economic & Behavioural Impacts of Land Value Taxes & Net Wealth Taxes in OECD Countries: A Realist Review

Part of Reform Scotland’s mission is to increase the level of debate about policy reform in Scotland. As well as publishing our own work, we seek ways to work with a broad range of individuals and organisations with expertise in all and any sectors, and of all political affiliations and none, to contribute fresh thinking, debate, challenge, and policy proposals.
 
As a result, we were delighted to be able to partner with Edinburgh University’s SWAY programme for the first time in 2024. Sam Wolstenholme-Britt carried out an MSc dissertation based on our research question on the potential of wealth taxes in Scotland. Her report, ‘The Economic & Behavioural Impacts of Land Value Taxes & Net Wealth Taxes in OECD Countries: A Realist Review’ is based on her dissertation.

Given the current fiscal outlook it is very difficult to see how Scotland can meet its future commitments without re-examining our tax system, including who and what we tax, and considering what the right balance should be. There is scope for experimentation and there has been a growing debate about whether wealth taxes should be introduced, either as part of an addition to the tax basket, or as a replacement to one or more existing taxes.
 
Sam’s comprehensive research outlines the lessons that can be learned from other countries which have implemented net wealth taxes or introduced a Land Value Tax. This includes issues such as the potential for capital flight; regional/ local variation; and the impact on development.

Chris Deerin, Reform Scotland’s Director commented: 
“Scotland is facing a perfect storm of a shrinking working age population, increasing demands for public services and growing budgetary pressures. It is clear that the status quo is unsustainable, but there are no easy answers. It is likely some sort of immobile wealth tax will need to be considered as part of a wider review of the tax strategy, but in doing so, it is important we learn the lessons from elsewhere that Sam has articulated in this report.”

Commenting on her time with Reform Scotland, Sam said:
Working with Reform Scotland has taught me to consider the real-world impact of my work, how it fits into the Scottish public policy landscape, and how research can encourage evidence-based policy decisions. My experience conducting research with a respected public policy institute was both exciting and instructive. I was given the opportunity to conduct research outside of academia, where my work has influence beyond the academic bubble in which researchers so often become trapped. I was able to learn the workings of the Scottish public policy landscape first-hand by attending a presentation hosted by Reform Scotland and by speaking with politicians and policy experts. Above all, my research has taught me that even small policy changes can have unintended consequences and policy decisions must be well-researched and carefully considered.”

Read the Report (PDF)

SWAY report 24 – wealth taxes