Proposed change to the tax system, 30% rate for all....

[Spit]

http://www.2020tax.org/

http://news.sky.com/home/business/article/16232022

There is a proposal to change and simplify the tax system in the UK. The highlights include:

Personal allowance raised to £10k.
Abolish National Insurance.
30% rate for everyone on all income streams, such as work, capital gains, dividend, interest, rents etc.
Abolish Inheritance tax and stamp duties.
Local authorities to set a local sales tax.

They reckon this will drastically cut the deficit in a 15 year time span. It has worked well in other countries that have adopted similar systems and it sure seems a fairer way of going about things to me. If people knew that 30% was all they paid then I am sure it would encourage a bit more get up and go!

What do you think?

 

[MooMoo444]

Isn't this a bit harsh on the lower end of the scale earners?

 

[~Divine~Wind~]

Personal allowance increased by what 2k?
For an additional 10% tax for the lower earners.

Depending on how the NI thing works out people might be out of pocket.
So if we dont pay into the NI where does benefit/pension come from?

 

[vanandjuanunited]

Councils would see their grants from central government cut but would be given new powers to impose local income and sales taxes.

How's that helping

 

[Paul11]

Local authorities to set a local sales tax.

i like the rest of it, but this would be way to confusing. we are not the USA with huge states

 

[Lunawolfy]

Isn't this a bit harsh on the lower end of the scale earners?

See for a second I thought that, but an extra 10% on nout is... Well nout

 

[arknor]

sounds great to me scrap the nhs and goverment subsidised/funded public transport while where at it

 

[Paul11]

it would be much simpler for sure

 

[MooMoo444]

See for a second I thought that, but an extra 10% on nout is... Well nout

lol, but seriously, this kind of tax system just makes the poor poorer and the rich richer.

 

[estebanrey]

Nice idea but politician will never simplify the tax system as it weakens their ability to effect elections and re-arrange the chairs at budget time.

Most of the last few budgets have been fiscally nuetral but tsill gained the Chancellor the headlines because he's now taking money from X and giving it to Y and they love the power this brings.

 

[Dr House]

It works here in Czech, flat tax rate of 15% but it actually works out to 17.5%.

not bad if you are a high earner

 

[P3N9U1N]

Abolishment of inheritance tax is good, 30% on lower earner isn't really fair

 

[estebanrey]

lol, but seriously, this kind of tax system just makes the poor poorer and the rich richer.

You're making the assumption that 'the rich' aren't currently over paying themselves to compensate for the current amounts of tax they are paying and that if they had to pay less they may well demand lower base salaries, leaving a bigger share of the pit for everyone else.

I've always believed that if you had a flat tax rate, those at the top would get paid less as a gross figure but get the same net due to lower tax levels. This difference can then get redistributed to those at the bottom.

 

[wozza2k]

This would be immense.

 

[Spit]

It works here in Czech, flat tax rate of 15% but it actually works out to 17.5%.

not bad if you are a high earner

Same with Hong Kong...

http://www.investhk.gov.hk/why-hong-kong/low-and-simple-tax-regime.html

 

[Rich1988]

I've always believed that if you had a flat tax rate, those at the top would get paid less as a gross figure but get the same net due to lower tax levels. This difference can then get redistributed to those at the bottom.

Nice idea in theory but realistically unlikely to happen surely?

 

[MrMoonX]

30% tax for all a let councils have local tax, might as well not bother working, what with VAT and everything else, you could easily be losing over 50% in tax, for low earners this is another suggestion by the morons at the top to cut their own tax bills and pass it on to the poor

 

[realBabelfish]

lol, but seriously, this kind of tax system just makes the poor poorer and the rich richer.

tories in charge... what do you expect

i dont mind as long as im not worse off. the gov **** away far too much of our money as it is (thats all governments).

i dont want to see the rich get richer at the poor's expense though.

as said before. if we abolish NI how will this help anyone? apart from the rich. what about pensions etc?

 

[Spit]

Abolishment of inheritance tax is good, 30% on lower earner isn't really fair

If you earn £15000 pa then you currently take home £12733.60 on the default tax code. On the new system you would take home £13500.

 

[elmarko]

A proposal by the tax payers alliance & a group of CEO's.

Now... call me cynical...

But perhaps (just maybe) this is an attempt to get those at the top (Who already yield the greatest benefits of society) to pay even less to sustain it.

According to the first figures, it could cost £50billion PA in lost tax - increasing the deficit significantly, then you have to take it on faith that it would yield economic growth (which I highly doubt as the spending power of the public, IE the people who buy the goods, would be stretched even further).

I'll leave to floor to people who will personally benefit from this to try to justify yet another tax cut for the top few percent at the expense of wider society.

I've always believed that if you had a flat tax rate, those at the top would get paid less as a gross figure but get the same net due to lower tax levels. This difference can then get redistributed to those at the bottom.

If you genuinely believe a reduction in the top rate in tax will get CEO's to start voluntarily reducing pay - you are not only an idiot but a deluded one at that.

as said before. if we abolish NI how will this help anyone? apart from the rich. what about pensions etc?

Pretty much this, the attitude is - screw anybody who relies on NI, public healthcare or state pensions (IE, 95%+ of the population).

If you earn £15000 pa then you currently take home £12733.60 on the default tax code. On the new system you would take home £13500.

I think you have to take into account the loss of services, that the person on 15K PA will need (due to the massive amount of cuts to public services required to fund this stupid idea).