Adam Smith Institute
Encyclopedia
The Adam Smith Institute, abbreviated to ASI, is a think tank
based in the United Kingdom
, named after one of the founders of modern economics, Adam Smith
. It espouses free market
and classical liberal views, in particular by creating radical policy options in the light of public choice theory
, which politicians can then develop. Its president, Madsen Pirie
, has said "We propose things which people regard as being on the edge of lunacy. The next thing you know, they're on the edge of policy".
It was the primary intellectual force behind privatisation in the Thatcher
era, and, with the Centre for Policy Studies
and Institute of Economic Affairs
, drove Thatcherite
policy on privatisation, taxation, education, and health. Several of the Institute's policies have been adopted by the Major
and Blair
governments, and the ASI has also served in an advisory capacity to governments overseas.
The Institute currently advocates the free market by publishing books and policy proposals, advising foreign governments, calculating the British Tax Freedom Day
, hosting speaker events for young people, and publishing a popular blog.
, and brothers Eamonn
& Stuart Butler
were students together at the University of St Andrews
in Scotland, and delegates of the university's Conservative Association to the 1971 Conservative Party Conference. In 1973, they left Scotland to work with Edwin Feulner
, who became co-founder of the free-market think tank
the Heritage Foundation
, in 1973. After their apprenticeship in the United States, Pirie and Eamonn Butler returned to Scotland in 1977 to found their own think tank, the Adam Smith Institute, set up with the help of Antony Fisher
of the Institute of Economic Affairs
. Stuart Butler is a conservative activist in Washington, D.C., remaining at the Heritage Foundation
.
The ASI recruited Douglas Mason
, another St Andrews alumnus and member of the university's Conservative Association, who did his most influential work for the Institute. Mason became one of its regular authors, and, in 1982, led the ASI's Omega Project report, which argued in favour of the compulsory contracting-out of most local services such as refuse collection, the replacement of the welfare state by private insurance, and further privatisation of public sector services and industries, including aspects of the police force.
(IEA) and the Centre for Policy Studies
(CPS), the ASI was one of three relied upon by the Thatcher government for policy. Unlike the CPS, which had been established by Thatcher and Keith Joseph
, and the IEA, which focused on more theoretical matters, the ASI was well-placed to produce bold and direct policies. Despite this role, the Adam Smith Institute developed an iconoclastic reputation, cynical about politicians, but enthusiastic to engage with them. The Institute's relationship with Thatcher was not without troubles. Although Madsen Pirie was the architect of much of the privatisation policy, he had no emotional ties to Thatcher, nor did the ASI propose policies on a range of social issues, despite its Thatcherite reputation.
A proposal for the sale of the UK's social housing stock claimed that the "perpetual search for profitability" of private-sector owners would "[stimulate] them to discover and produce what the consumer wants" and that, in this way, the market was "more genuinely democratic than the public sector, involving the decisions of far more individuals and at much more frequent intervals". The report's proposed scrapping of the existing local-government tax in favour of a per-capita charge was later implemented by the Prime Minister, Margaret Thatcher, whose government introduced the poll tax
in Scotland in 1989, and in England and Wales in 1990. The poll tax was disastrous for the Thatcher government and is widely seen as a complete failure which precipitated the downfall of her leadership.
Other policy recommendations for which Mason was responsible included the privatisation of the Royal Mail
(The Last Post −1991); the introduction of charges in British public libraries (Ex Libris – 1986); the privatisation of the Forestry Commission; the complete removal of arts subsidies (Expounding The Arts – 1987); and the abolition of restrictions on drinking (Time To Call Time – 1986).
In November 1994, the Institute began a review of welfare reform, called 'Operation Underclass', aimed at methods of creating jobs for the long-term unemployed. Some elements of the programme were adopted by the government within months.
The ejection of the Conservative government in 1997 did not have as dramatic an effect on the ASI as some had anticipated. The Institute praised the government's welfare-to-work programmes, describing it as 'the most successful policy initiative of this century', while a month into the Labour government, during which time Labour had implemented the long-held ASI aim of an independent Bank of England, Madsen Pirie gave it a nine out of ten for performance. Eamonn Butler has ascribed this flexibility to who is in power to their role not being 'to be political or shout slogans', but to be 'policy engineers'.
, the day in the year when the average person has earned enough to pay his or her annual tax bill. The Institute calculates the figure using a range of statistics, including the macroeconomic health of the economy, foreign and domestic investment, and tax policy. The ASI uses Tax Freedom Day to call attention to UK tax rates and fiscal policy.
named the Adam Smith Institute among the top 10 think-tanks in the world outside of the US. The Institute is highly influential in UK public policy, and was "a pioneer of privatisation" in the UK and elsewhere. Early Institute papers proposed the outsourcing
of local government services (1980), the fundamentals of the poll tax
(1981–1985), and the deregulation
and privatisation of transportation (1980). The privatisation of British Rail in 1997 was also based on a plan suggested by the Institute. Other influences include the UK's cutting of the highest rate of income tax
from 83% to 40% in the late 1980s, and its liberalisation of alcohol licensing laws.
The Institute has released a series of Roadmap to Reform papers, calling for shifts in public policy in Health, Deregulation and Europe. In 2006, the Institute released a paper calling for a rethink of Britain's countryside policy.
establish an internal market
with hospitals buying the use of facilities from other districts and from the private sector. Internal markets are now NHS policy.
ASI also recommended an internal market system for UK schools that would have state funds to follow students to independently run academic institutions. This approach to school funding is now Conservative policy.
National Government – ASI proposed that QUANGO
s be reduced in number and subject to increased scrutiny. QUANGOs were subsequently cut by 20 percent and put under parliamentary review.
Local Government – Following the Institute's call for the use of private businesses by local governments, many local services, such as waste collection and cleaning, were contracted out. Additionally, local governments are now required to solicit competitive bids for local services
Welfare – ASI called for a radical shake-up of welfare policy, which would make work requirements absolutely central to the benefits system. Many of ASI's proposals subsequently became Tory
policy, and some even found favour among Labour
MPs.
Health – ASI lobbied for a change in VAT
regulations to facilitate the outsourcing of ancillary hospital services. The government now requires a solicitation of bids from private contractors for cleaning and catering services. VAT regulations have been modified to put in-house work and outside tenders on an equal basis. It is estimated that these actions saves £100 million per annum.
Education – The Education Reform Act 1988
reflected many policy changes proposed by ASI including increasing representation of parents on state school governing boards, shifting control of state schools from the local authority to the board and head teachers, abolishing fixed school catchment areas.
Transport – Urban and local bus services have been deregulated and the National Bus Company
has been privatized into more than 60 companies following ASI's suggestion that the National Bus Company be broken up and urban and local bus services be opened to competition and choice.
Justice – In accordance with ASI's proposals, the government resolved to experiment with privately contracted prisons and electronic tracking tags for low-security prisoners.
's 1988 budget.
Personal Allowance – Prior to the Exchequer's
2008 pre-budget report, ASI made a case for the personal income tax allowance to be raised to £12,000 (from the current £6,035 allowance) for all UK taxpayers. Such a policy would take 7 million people out of the tax system, and low-income earners would not pay at all. The ASI calculated that this reform would be equivalent to giving the average worker an extra £1,730 per year in gross pay, making them £100 per month better off. The cost to the Exchequer would be £18.9 billion.
Flat Tax – A 2005 paper by the Institute proposed a flat-rate income tax of 22% for UK taxpayers, with the above-referenced tax-free personal allowance of £12,000. City AM editor Allister Heath said of this report, "rarely has a think-tank publication been this influential so quickly. Its arguments have been dissected by the UK Treasury, are well known among the Shadow Treasury Team, have had an influence on some parts of the Liberal Democrats and were even adopted by several minor political parties". The ASI continues to campaign for a flat tax
.
Think tank
A think tank is an organization that conducts research and engages in advocacy in areas such as social policy, political strategy, economics, military, and technology issues. Most think tanks are non-profit organizations, which some countries such as the United States and Canada provide with tax...
based in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, named after one of the founders of modern economics, Adam Smith
Adam Smith
Adam Smith was a Scottish social philosopher and a pioneer of political economy. One of the key figures of the Scottish Enlightenment, Smith is the author of The Theory of Moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations...
. It espouses free market
Free market
A free market is a competitive market where prices are determined by supply and demand. However, the term is also commonly used for markets in which economic intervention and regulation by the state is limited to tax collection, and enforcement of private ownership and contracts...
and classical liberal views, in particular by creating radical policy options in the light of public choice theory
Public choice theory
In economics, public choice theory is the use of modern economic tools to study problems that traditionally are in the province of political science...
, which politicians can then develop. Its president, Madsen Pirie
Madsen Pirie
Dr Duncan Madsen Pirie, PhD is a British researcher, author, and educator. He is the founder and current President of the Adam Smith Institute, a UK think tank which has been in operation since 1978.-Early life and education:...
, has said "We propose things which people regard as being on the edge of lunacy. The next thing you know, they're on the edge of policy".
It was the primary intellectual force behind privatisation in the Thatcher
Margaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...
era, and, with the Centre for Policy Studies
Centre for Policy Studies
The Centre for Policy Studies is a British right wing policy think tank whose goal is to promote coherent and practical public policy, to roll back the state, reform public services, support communities, and challenge threats to Britain’s independence...
and Institute of Economic Affairs
Institute of Economic Affairs
The Institute of Economic Affairs , founded in 1955, styles itself the UK's pre-eminent free-market think-tank. Its mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social...
, drove Thatcherite
Thatcherism
Thatcherism describes the conviction politics, economic and social policy, and political style of the British Conservative politician Margaret Thatcher, who was leader of her party from 1975 to 1990...
policy on privatisation, taxation, education, and health. Several of the Institute's policies have been adopted by the Major
John Major
Sir John Major, is a British Conservative politician, who served as Prime Minister of the United Kingdom and Leader of the Conservative Party from 1990–1997...
and Blair
Tony Blair
Anthony Charles Lynton Blair is a former British Labour Party politician who served as the Prime Minister of the United Kingdom from 2 May 1997 to 27 June 2007. He was the Member of Parliament for Sedgefield from 1983 to 2007 and Leader of the Labour Party from 1994 to 2007...
governments, and the ASI has also served in an advisory capacity to governments overseas.
The Institute currently advocates the free market by publishing books and policy proposals, advising foreign governments, calculating the British Tax Freedom Day
Tax Freedom Day
Tax Freedom Day is the first day of the year in which a nation as a whole has theoretically earned enough income to fund its annual tax burden. It is annually calculated in the United States by the Tax Foundation—a Washington, D.C.-based tax research organization...
, hosting speaker events for young people, and publishing a popular blog.
Foundation
Dr Madsen PirieMadsen Pirie
Dr Duncan Madsen Pirie, PhD is a British researcher, author, and educator. He is the founder and current President of the Adam Smith Institute, a UK think tank which has been in operation since 1978.-Early life and education:...
, and brothers Eamonn
Eamonn Butler
Eamonn Butler is Director and co-founder of the Adam Smith Institute think tank, and an author and broadcaster on economic and social issues.-Career:...
& Stuart Butler
Stuart Butler
Stuart Butler is the Director of the Center for Policy Innovation at The Heritage Foundation, a conservative think-tank in Washington, D.C. He is a health care analyst and commentator, and he has also written extensively about urban policy and welfare, credited with introducing the idea of urban...
were students together at the University of St Andrews
University of St Andrews
The University of St Andrews, informally referred to as "St Andrews", is the oldest university in Scotland and the third oldest in the English-speaking world after Oxford and Cambridge. The university is situated in the town of St Andrews, Fife, on the east coast of Scotland. It was founded between...
in Scotland, and delegates of the university's Conservative Association to the 1971 Conservative Party Conference. In 1973, they left Scotland to work with Edwin Feulner
Edwin Feulner
Edwin John Feulner Jr. is President of the conservative think tank Heritage Foundation, a position he has held since 1977....
, who became co-founder of the free-market think tank
Think tank
A think tank is an organization that conducts research and engages in advocacy in areas such as social policy, political strategy, economics, military, and technology issues. Most think tanks are non-profit organizations, which some countries such as the United States and Canada provide with tax...
the Heritage Foundation
Heritage Foundation
The Heritage Foundation is a conservative American think tank based in Washington, D.C. Heritage's stated mission is to "formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong...
, in 1973. After their apprenticeship in the United States, Pirie and Eamonn Butler returned to Scotland in 1977 to found their own think tank, the Adam Smith Institute, set up with the help of Antony Fisher
Antony Fisher
Sir Antony Fisher was one of the most influential background players in the global rise of libertarian think-tanks during the second half of the twentieth century, founding the Institute of Economic Affairs and the Atlas Economic Research Foundation. Through Atlas, he helped establish up to 150...
of the Institute of Economic Affairs
Institute of Economic Affairs
The Institute of Economic Affairs , founded in 1955, styles itself the UK's pre-eminent free-market think-tank. Its mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social...
. Stuart Butler is a conservative activist in Washington, D.C., remaining at the Heritage Foundation
Heritage Foundation
The Heritage Foundation is a conservative American think tank based in Washington, D.C. Heritage's stated mission is to "formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong...
.
The ASI recruited Douglas Mason
Douglas Mason
Douglas Calder Mason was a British policymaker, writer and antiquarian bookseller. He came to be known as the "father of the poll tax".-Biography:...
, another St Andrews alumnus and member of the university's Conservative Association, who did his most influential work for the Institute. Mason became one of its regular authors, and, in 1982, led the ASI's Omega Project report, which argued in favour of the compulsory contracting-out of most local services such as refuse collection, the replacement of the welfare state by private insurance, and further privatisation of public sector services and industries, including aspects of the police force.
Thatcher's inner circle
The Thatcher era was the high water mark for the think tank movement, and with the Institute of Economic AffairsInstitute of Economic Affairs
The Institute of Economic Affairs , founded in 1955, styles itself the UK's pre-eminent free-market think-tank. Its mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social...
(IEA) and the Centre for Policy Studies
Centre for Policy Studies
The Centre for Policy Studies is a British right wing policy think tank whose goal is to promote coherent and practical public policy, to roll back the state, reform public services, support communities, and challenge threats to Britain’s independence...
(CPS), the ASI was one of three relied upon by the Thatcher government for policy. Unlike the CPS, which had been established by Thatcher and Keith Joseph
Keith Joseph
Keith St John Joseph, Baron Joseph, Bt, CH, PC , was a British barrister and politician. A member of the Conservative Party, he served in the Cabinet under three Prime Ministers , and is widely regarded to have been the "power behind the throne" in the creation of what came to be known as...
, and the IEA, which focused on more theoretical matters, the ASI was well-placed to produce bold and direct policies. Despite this role, the Adam Smith Institute developed an iconoclastic reputation, cynical about politicians, but enthusiastic to engage with them. The Institute's relationship with Thatcher was not without troubles. Although Madsen Pirie was the architect of much of the privatisation policy, he had no emotional ties to Thatcher, nor did the ASI propose policies on a range of social issues, despite its Thatcherite reputation.
A proposal for the sale of the UK's social housing stock claimed that the "perpetual search for profitability" of private-sector owners would "[stimulate] them to discover and produce what the consumer wants" and that, in this way, the market was "more genuinely democratic than the public sector, involving the decisions of far more individuals and at much more frequent intervals". The report's proposed scrapping of the existing local-government tax in favour of a per-capita charge was later implemented by the Prime Minister, Margaret Thatcher, whose government introduced the poll tax
Community Charge
The Community Charge, popularly known as the "poll tax", was a system of taxation introduced in replacement of the rates to part fund local government in Scotland from 1989, and England and Wales from 1990. It provided for a single flat-rate per-capita tax on every adult, at a rate set by the...
in Scotland in 1989, and in England and Wales in 1990. The poll tax was disastrous for the Thatcher government and is widely seen as a complete failure which precipitated the downfall of her leadership.
Other policy recommendations for which Mason was responsible included the privatisation of the Royal Mail
Royal Mail
Royal Mail is the government-owned postal service in the United Kingdom. Royal Mail Holdings plc owns Royal Mail Group Limited, which in turn operates the brands Royal Mail and Parcelforce Worldwide...
(The Last Post −1991); the introduction of charges in British public libraries (Ex Libris – 1986); the privatisation of the Forestry Commission; the complete removal of arts subsidies (Expounding The Arts – 1987); and the abolition of restrictions on drinking (Time To Call Time – 1986).
ASI after Thatcher
In 1992, the Institute founded a consulting company, Adam Smith International Ltd, which was "charged with overseeing the overseas work of the institute... [in] an attempt to capitalise on the growing international trend towards economic liberalization and marketization". While Eamonn Butler and Madsen Pirie were, as of 1998, members of the management board of both organisations, the management team of Adam Smith International and the Adam Smith Institute is now separate.In November 1994, the Institute began a review of welfare reform, called 'Operation Underclass', aimed at methods of creating jobs for the long-term unemployed. Some elements of the programme were adopted by the government within months.
The ejection of the Conservative government in 1997 did not have as dramatic an effect on the ASI as some had anticipated. The Institute praised the government's welfare-to-work programmes, describing it as 'the most successful policy initiative of this century', while a month into the Labour government, during which time Labour had implemented the long-held ASI aim of an independent Bank of England, Madsen Pirie gave it a nine out of ten for performance. Eamonn Butler has ascribed this flexibility to who is in power to their role not being 'to be political or shout slogans', but to be 'policy engineers'.
Tax Freedom Day
The Adam Smith Institute publishes the British version of Tax Freedom DayTax Freedom Day
Tax Freedom Day is the first day of the year in which a nation as a whole has theoretically earned enough income to fund its annual tax burden. It is annually calculated in the United States by the Tax Foundation—a Washington, D.C.-based tax research organization...
, the day in the year when the average person has earned enough to pay his or her annual tax bill. The Institute calculates the figure using a range of statistics, including the macroeconomic health of the economy, foreign and domestic investment, and tax policy. The ASI uses Tax Freedom Day to call attention to UK tax rates and fiscal policy.
The Next Generation
The Adam Smith Institute facilitates regular meetings of young people who have interests in free markets. These 16- to 30-year olds form a group called The Next Generation (TNG). MPs and prominent media figures are typical guest speakers at monthly meetings of The Next Generation. The Liberty League, an affiliated network for freedom-loving groups across the UK, was founded by members of the TNG Committee.Influence
In January 2009 Foreign Policy and the University of PennsylvaniaUniversity of Pennsylvania
The University of Pennsylvania is a private, Ivy League university located in Philadelphia, Pennsylvania, United States. Penn is the fourth-oldest institution of higher education in the United States,Penn is the fourth-oldest using the founding dates claimed by each institution...
named the Adam Smith Institute among the top 10 think-tanks in the world outside of the US. The Institute is highly influential in UK public policy, and was "a pioneer of privatisation" in the UK and elsewhere. Early Institute papers proposed the outsourcing
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
of local government services (1980), the fundamentals of the poll tax
Poll tax
A poll tax is a tax of a portioned, fixed amount per individual in accordance with the census . When a corvée is commuted for cash payment, in effect it becomes a poll tax...
(1981–1985), and the deregulation
Deregulation
Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or...
and privatisation of transportation (1980). The privatisation of British Rail in 1997 was also based on a plan suggested by the Institute. Other influences include the UK's cutting of the highest rate of income tax
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
from 83% to 40% in the late 1980s, and its liberalisation of alcohol licensing laws.
The Institute has released a series of Roadmap to Reform papers, calling for shifts in public policy in Health, Deregulation and Europe. In 2006, the Institute released a paper calling for a rethink of Britain's countryside policy.
Public Sector Reform
Internal Markets – ASI proposed that the National Health ServiceNational Health Service
The National Health Service is the shared name of three of the four publicly funded healthcare systems in the United Kingdom. They provide a comprehensive range of health services, the vast majority of which are free at the point of use to residents of the United Kingdom...
establish an internal market
Internal market
An internal market operates inside an organization or set of organizations which have decoupled internal components. Each component trades its services and interfaces with the others. Often a set of government or government-funded set of organizations will operate an internal market...
with hospitals buying the use of facilities from other districts and from the private sector. Internal markets are now NHS policy.
ASI also recommended an internal market system for UK schools that would have state funds to follow students to independently run academic institutions. This approach to school funding is now Conservative policy.
National Government – ASI proposed that QUANGO
Quango
Quango or qango is an acronym used notably in the United Kingdom, Ireland and elsewhere to label an organisation to which government has devolved power...
s be reduced in number and subject to increased scrutiny. QUANGOs were subsequently cut by 20 percent and put under parliamentary review.
Local Government – Following the Institute's call for the use of private businesses by local governments, many local services, such as waste collection and cleaning, were contracted out. Additionally, local governments are now required to solicit competitive bids for local services
Welfare – ASI called for a radical shake-up of welfare policy, which would make work requirements absolutely central to the benefits system. Many of ASI's proposals subsequently became Tory
Conservative Party (UK)
The Conservative Party, formally the Conservative and Unionist Party, is a centre-right political party in the United Kingdom that adheres to the philosophies of conservatism and British unionism. It is the largest political party in the UK, and is currently the largest single party in the House...
policy, and some even found favour among Labour
Labour Party (UK)
The Labour Party is a centre-left democratic socialist party in the United Kingdom. It surpassed the Liberal Party in general elections during the early 1920s, forming minority governments under Ramsay MacDonald in 1924 and 1929-1931. The party was in a wartime coalition from 1940 to 1945, after...
MPs.
Health – ASI lobbied for a change in VAT
Value added tax
A value added tax or value-added tax is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its...
regulations to facilitate the outsourcing of ancillary hospital services. The government now requires a solicitation of bids from private contractors for cleaning and catering services. VAT regulations have been modified to put in-house work and outside tenders on an equal basis. It is estimated that these actions saves £100 million per annum.
Education – The Education Reform Act 1988
Education Reform Act 1988
The Education Reform Act 1988 is widely regarded as the most important single piece of education legislation in England, Wales and Northern Ireland since the 'Butler' Education Act 1944...
reflected many policy changes proposed by ASI including increasing representation of parents on state school governing boards, shifting control of state schools from the local authority to the board and head teachers, abolishing fixed school catchment areas.
Transport – Urban and local bus services have been deregulated and the National Bus Company
National Bus Company
The National Bus Company, or NBC, was the Australian brand for National Express Group's mass transit bus services in Melbourne and Brisbane. Its sister companies were Westbus, Hillsbus, and Glenorie in Sydney, Southern Coast Transit in Perth.-Routes:...
has been privatized into more than 60 companies following ASI's suggestion that the National Bus Company be broken up and urban and local bus services be opened to competition and choice.
Justice – In accordance with ASI's proposals, the government resolved to experiment with privately contracted prisons and electronic tracking tags for low-security prisoners.
Tax Reform
Tax Rates – As recommended by the Adam Smith Institute, the top tax rate was reduced from 60% to 40% in Margaret ThatcherMargaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...
's 1988 budget.
Personal Allowance – Prior to the Exchequer's
Chancellor of the Exchequer
The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all economic and financial matters. Often simply called the Chancellor, the office-holder controls HM Treasury and plays a role akin to the posts of Minister of Finance or Secretary of the...
2008 pre-budget report, ASI made a case for the personal income tax allowance to be raised to £12,000 (from the current £6,035 allowance) for all UK taxpayers. Such a policy would take 7 million people out of the tax system, and low-income earners would not pay at all. The ASI calculated that this reform would be equivalent to giving the average worker an extra £1,730 per year in gross pay, making them £100 per month better off. The cost to the Exchequer would be £18.9 billion.
Flat Tax – A 2005 paper by the Institute proposed a flat-rate income tax of 22% for UK taxpayers, with the above-referenced tax-free personal allowance of £12,000. City AM editor Allister Heath said of this report, "rarely has a think-tank publication been this influential so quickly. Its arguments have been dissected by the UK Treasury, are well known among the Shadow Treasury Team, have had an influence on some parts of the Liberal Democrats and were even adopted by several minor political parties". The ASI continues to campaign for a flat tax
Flat tax
A flat tax is a tax system with a constant marginal tax rate. Typically the term flat tax is applied in the context of an individual or corporate income that will be taxed at one marginal rate...
.
Books
- The Alternative Manifesto, Eamonn Butler, 2010
- Hayek: His Contribution to the Political and Economic Thought of Our Time, Eamonn Butler & Jeff Riggenbach, 2010 (Audiobook)
- Ludwig Von Mises: Fountainhead of the Modern Microeconomics Revolution, Eamonn Butler & Jeff Riggenbach, 2010 (Audiobook)
- The Rotten State of Britain, Eamonn Butler, 2009
- Freedom 101, Madsen Pirie, 2008
- The Best Book on the Market, Eamonn Butler, 2008
- Adam Smith – A Primer, Eamonn Butler, 2007
- The Future of the NHSThe Future of the NHSThe Future of the NHS is a book published by xpl Publishing in 2006 . It is edited by Dr Michelle Tempest and brings together forty-four leading experts in the fields of health care, politics and policy making...
, Eamonn Butler (ed. Dr. Michelle TempestMichelle TempestDr. Michelle Tempest is a British psychiatrist and author. In 2010 she was the Conservative Parliamentary Candidate for North West Durham.-Academic background:...
), 2006 - Simply No Mistake: How the Stakeholder Pension Must Work, Eamonn Butler, 1998
- City in the Mist, Douglas MasonDouglas MasonDouglas Calder Mason was a British policymaker, writer and antiquarian bookseller. He came to be known as the "father of the poll tax".-Biography:...
, 1998 - Hayek: A Commemorative Album (ed. John Raybould), 1998
- Readings in Liberalism (ed. Detmar Doering), 1995
- The End of the Welfare State, Eamonn Butler & Madsen Pirie, 1994
- Shephard's Warning: Setting Schools Back on Course, Antony FlewAntony FlewAntony Garrard Newton Flew was a British philosopher. Belonging to the analytic and evidentialist schools of thought, he was notable for his works on the philosophy of religion....
, 1994 - 20-20 Vision: Targets for Britain, Madsen Pirie, 1994
- Blueprint for a Revolution, Madsen Pirie, 1993
- Taming the Trade Unions, Eamonn Butler, 1991
- A country at ease with itself, Michael ForsythMichael Forsyth, Baron Forsyth of DrumleanMichael Bruce Forsyth, Baron Forsyth of Drumlean PC, Kt is a British financier and politician, who was the Member of Parliament for Stirling from 1983 to 1997 and served in the cabinet of John Major as Secretary of State for Scotland from 1995 to 1997...
, 1991 - Adam Smith's Legacy, Norman Barry et al., 1990
- Wayward Elite: A Critique of British Teacher-Education, Dennis O'KeeffeDennis O'KeeffeDennis O'Keeffe is Professor of Social Science at the University of Buckingham and current editor of the Salisbury Review. He is Education and Welfare Fellow at the Institute of Economic Affairs and serves on the advisory boards of both the Social Affairs Unit, and FOREST, the smoker's rights...
, 1990 - Micropolitics: Creation of a Successful Policy, Madsen Pirie, 1988
- Milton Friedman: A Guide to His Economic Thought, Eamonn Butler, 1985
- Hayek, Eamonn Butler, 1985
- Aid by Enterprise, Eamonn Butler & Madsen Pirie, 1984
- Economy and Local Government, Eamonn Butler & Madsen Pirie, 1981
Reports & Briefings
Topics:- Economy
- Education
- Health
- Justice and Civil Liberties
- Welfare
- Regulation and Industry
- Transport
- Government
- Environment
- Media and Culture
External links
- Adam Smith Institute
- Adam Smith Institute Blog
- Liberty League, an affiliated network for freedom-loving groups across the UK.