Sir Kenneth told the Committee a recommendation that Scotland should take charge of half the standard income tax rate, amounting to ten pence is an appropriate "start to the process".
Central to the Scotland Bill is a recommendation that Scotland should take charge of half the standard income tax rate - 10p - with a corresponding cut in the block grant Scotland gets from the Treasury.
The standard rate of income tax (10%) and higher rate (20%) remain the same.
British corporate tax at a standard rate of 31% is also considerably lower than a continental average of around 40%.
Current rules require companies that generate cash in low tax jurisdictions to pay the standard U.S. corporate rate on repatriated cash, less whatever tax they paid in in a foreign country.
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The "Tartan Tax" - plus or minus a maximum of 3p of income tax, levied upon the standard rate only, not the upper rates - was simply too limited for credible use.
Though the maximum tax rate is lower for the AMT, most of the standard write-offs aren't allowed.
It gave top-tier earning expatriates the ability to avoid the standard progressive income tax of up to 43% and instead pay a flat tax rate of 24% on income earned in-country.
The overhaul--separate from the AMT fix--would increase standard deductions, double earned income tax credits for some and lower the top corporate marginal tax rate from 35% to 30.5%.
Some local authorities have already announced plans to not just scrap the council tax discount on second homes and empty properties, but to charge double the standard rate on those properties instead.
But what emerged was a clear improvement of the tax code, with a top statutory personal income rate of 28 percent and the doubling of the standard deduction.
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