What Has Happened to Marginal Tax Rates?

Abstract

As the economy boomed in the early 2000s, income tax rates were reduced, tax credits were increased and the standard rate band was widened. With the onset of the crisis in 2007-2008, and the collapse of revenues from capital gains tax and stamp duty, major increases in taxes on income were introduced to sustain and increase tax revenue.What has been the net impact of these policy changes on marginal effective rates of tax on income?