- Tartan tax
When legislating for the
Scottish Parliament , a number of matters were reserved by theUK Parliament ('Westminster'). One such reserved matter wastaxation ; however, this had been a key point in Scottish negotiations relating to parliamentary control. As a means of compromise, Westminster afforded the Scottish Parliament the ability to vary income tax, which was subsequently given the consent of theScottish electorate in the 2nd question of the 1997 devolution referendum.Therefore, the
Scotland Act 1998 granted theScottish Parliament the power to varyincome tax by +/- 3p in every pound. This power is often referred to as the tartan tax, a phrase first used byMichael Forsyth as a way of attacking the power, using the idea of 'tartan ' to get across the idea that it would be an extra tax on Scots alone. [ [http://www.thehistorychannel.co.uk/site/encyclopedia/article_show/Tartan_Tax_/m0092168.html?&searchtermold=the%20labour%20party&searchtermold=the%20labour%20party Tartan Tax] History Channel] However, the phrase tartan tax would only correctly apply if the tax were varied upwards - no phrase has yet been suggested if the tax were varied downwards. To date, the Scottish Parliament has chosen not to utilise its tax varying powers.Demands for greater tax varying powers
Though present tax varying powers have not been used, demands for extra powers for the Scottish parliament have included demands for
fiscal autonomy which would give control over all taxes raised in Scotland to the Scottish Parliament. [ [http://news.scotsman.com/ViewArticle.aspx?articleid=2688251 Cameron says Scotland can have fiscal autonomy if Tories want it] ]References
ee also
*
Fiscal autonomy
*Local income tax
*Taxation in the United Kingdom
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