The tax and benefit system should have a coherent structure based on clearly defined economic principles. There should be a clear vision of the ideal system, in which the various elements fit properly and from which unnecessary distortions have been eliminated. Making
towards a coherent system such as this would be quite valuable. It is likely to be even more valuable when the tax system needs to do more work.
We have looked at the major components of a modern tax system and, with a particular focus on the UK, we have developed a range of proposals for reform. In making these proposals, we have been guided by economic theory, by the evidence on the impact of taxes, and by knowledge about the distribution of incomes and the working of the economy.
We start by laying out the broad features of a good tax system. We move on to look at how the UK system stacks up against this ideal, before going through our main recommendations for reform.
From “Tax by Design: The Mirrlees Review”