Buy back better: The case for raising taxes on dividends and buybacks

Article

Households are experiencing a real-terms income squeeze while some of Britain’s largest companies transfer profits to their shareholders at record levels.

Taxes on shareholder transfers should be raised to ensure that companies are not channelling profits to their shareholders at a time of national economic crisis.

This briefing paper argues that the UK government can raise revenues by increasing taxes on dividends and buybacks. This is one mechanism which will allow the government to extend support for households and businesses through the cost of living crisis without resorting to public service cuts. The government should be prioritising progressive revenue-raisers which address growing wealth inequality, rather than turning back to the austerity cuts of the past.

This briefing is published in collaboration with Common Wealth as part of our programme of work exploring profits and corporate power post-pandemic.

Related items

  1. Two male construction workers in high vis jackets laughing together in a van

    Mission-driven industrial relations: The case for fair pay agreements

    How fair pay agreements could support the government’s mission-based approach by resolving labour market challenges.

  2. Women in Scotland: the gendered impact of care on financial stability and well-being

    Women in Scotland are far likelier than men to take on childcare and other caring responsibilities, which puts them at an economic disadvantage. 
  3. One person handing a blue UK passport to another

    Citizenship: A race to the bottom?

    The ability to move from temporary immigration status to settlement, and ultimately to citizenship, is the cornerstone of a fair and functional immigration system.