?????? Will Brexit ultimately move towards a higher tax model?

Boris Johnson's government?has just announced new tax measures to increase revenue?and fund health care and social services. The tax hike, worth more than ￡12 billion a year – about US$16.5 billion –?will push Britain's tax burden to its highest level since 1950.?In particular, a 1.25 percentage point increase in social security contributions on wages has been announced, as well as a 1.25 percentage point increase in tax on dividends received.

"Targeting dividends is a kick in the teeth for people who are prudently investing for the long term in companies that reward shareholders with regular payments."?- Moira O'Neill, head of personal finance at Interactive Investor

This is by no means the first announcement of a tax increase by Boris Johnson's government.?Last March the British government made public its intention to raise income tax and also corporation tax.?In the latter case, the announcement meant that the taxation of corporate profits will go from 19% to 25%, which means cancelling all the reductions made by David Cameron's governments and is the first increase in this tax since 1974.

In total, with all these measures, the British government wants to raise tax revenue by at least?￡42 billion (US$58 billion) by 2025.

Why is it important?

The Conservative Party is moving from being the party of low taxes to, in Johnson's words, becoming the party of the NHS – the national health service.

In practice, this means that the British Conservatives seem to be embracing the new political trend based on?bigger governments. This means?breaking Boris Johnson's election promise?not to raise key taxes.

The question we can ask ourselves is, are these measures compatible with the higher levels of competitiveness that Brexit demands??