Participation rises sharply when contribution is the default position rather than requiring active enrolment, writes James Kyle
The finding that three-quarters of UK millionaires say they would be willing to pay more tax (Report, 13 May) is politically significant at a time when Labour faces growing pressure both to fund public services and to defend progressive policies against rising anti-tax populism. However, the crucial question is not what people say in surveys, but how policy converts stated willingness into actual revenue.
The Treasury’s standard response is that wealthy individuals can already make voluntary payments to HMRC. Yet the sums raised remain negligible. This is entirely predictable, because behavioural research repeatedly shows that opt-in systems produce dramatically lower participation than opt-out systems – the core principle behind so-called nudge theory. Successive UK governments have already relied heavily on the latter approach in areas ranging from pension auto-enrolment to organ donation frameworks.
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Participation rises sharply when contribution is the default position rather than requiring active enrolment, writes James KyleThe finding that three-quarters of UK millionaires say they would be willing to pay more t...
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