Calls for single 30% income tax rate

[martyh]

A single 30% rate of income tax is needed in order to boost growth in the UK, a report by lobbying groups says.
The 2020 Tax Commission's report also calls for the abolition of national insurance, and for the basic personal allowance to be raised to £10,000.
It claims that the changes would result in a tax cut of £3,400 for a two-earner household with an income of £28,000.

http://www.bbc.co.uk/news/business-18137548


What do people think of this idea ?,i think it has merit .
It should be stressed that it is only an idea put forward by the Tax payer Alliance and Institute of Directors

[heero_yuy]

For intents and purposes NI is just another income tax and has been disassociated with pensions and other state benefits for a long time. All the money just goes into the treasury's black hole to be doled out anyway.

One system would have fewer people needed to administer it and be less likely to be avoided. I think that there would need to be some gearing related to overall income so that it is broadly revenue neutral.

[mertle]

bonkers looney idea. Look who will be the losers no doubt.

Where would government make shortfall tax aha people will say these rich corporates individuals will be all angelic. They wont they will still avoid tax until they get there way pay NO TAX.

I doubt question the grounds it would boost growth at all either.

There one simple reason why rich pay more is because wages for ordinary workers stagnated so much over the years. So there share of how much they pay goes up while ordinary wages freezes/reduced in real terms. While they took on average 11% increase therefore if they want inflation busting increases then they pay there taxes.

Why is this government constantly blaming the ordinary people.

When will they finally start taking on the parasites the banks and those who wont pay there taxes.

http://www.telegraph.co.uk/finance/p...x-for-all.html

So this report comes from the rich for the rich.

[martyh]

Originally Posted by mertle

l

So this report comes from the rich for the rich.

No it doesn't ,obviously you have neglected to read the article again

[Hugh]

You know we mustn't let facts spoil our prejudices.....

[Dai]

Originally Posted by martyh

What do people think of this idea ?,i think it has merit .
It should be stressed that it is only an idea put forward by the Tax payer Alliance and Institute of Directors

An idea nicked straight from UKIP as it happens. I think it's an excellent idea to pursue. The tax system as it stands has so much complication that it's full of holes and open to immense tax avoidance.

[martyh]

Originally Posted by DaiNasty

An idea nicked straight from UKIP as it happens. I think it's an excellent idea to pursue. The tax system as it stands has so much complication that it's full of holes and open to immense tax avoidance.

I must admit it's not a new idea and as you say should be pursued,and while they are at it they can get rid of the stupidly complicated tax credit system as well

[Ignitionnet]

Read it in CityAM earlier. Excellent ideas there and, in complete contrast to Mertle's views, it's basically about reducing the taxes everyone pays by massively simplifying and ensuring everyone pays.

One noteworthy thing is the same tax rate on capital as on income, I've no idea how this is by the rich for the rich.

Whatever Mertle may think people pay taxes, not corporations. A flat 30% rate removes many of the aberrations and is, in fact, a tax cut for everyone who pays tax, as a reminder the two sets of NI + basic rate tax is over 36%.

Simplifying the tax system and removing loopholes and allowances and either taxing at 30% or 0% will increase, not decrease, the tax take from the most wealthy as they'll not be able to use capital vehicles to change income into capital gains, well they could but it's pointless, nor funnel through corporations (Ken Livingstone) to avoid income tax and NI as it's the same rate regardless.

Had Mertle checked he'd have noted that specifically commented on was the phenomenon of using debt interest to reduce tax liabilities (see Boots), and removal of this allowance, amongst others.

I think this is a fantastic idea. Local governments should be given more tax raising powers and national taxes should be fair, simple, and transparent. Right now they're unfair, ridiculously, ridiculously complicated, and due to that complexity utterly opaque.

In short welcome to Britain Mr Investor, here's your tax rate, this is all the tax you'll pay, no more no less, thank you for your business. Investors, be they corporations on private individuals, like predictability and stability, this definitely provides that.

[martyh]

Originally Posted by Ignitionnet

Read it in CityAM earlier. Excellent ideas there and, in complete contrast to Mertle's views, it's basically about reducing the taxes everyone pays by massively simplifying and ensuring everyone pays.

One noteworthy thing is the same tax rate on capital as on income, I've no idea how this is by the rich for the rich.

Whatever Mertle may think people pay taxes, not corporations. A flat 30% rate removes many of the aberrations and is, in fact, a tax cut for everyone who pays tax, as a reminder the two sets of NI + basic rate tax is over 36%.

Simplifying the tax system and removing loopholes and allowances and either taxing at 30% or 0% will increase, not decrease, the tax take from the most wealthy as they'll not be able to use capital vehicles to change income into capital gains, well they could but it's pointless, nor funnel through corporations (Ken Livingstone) to avoid income tax and NI as it's the same rate regardless.

Had Mertle checked he'd have noted that specifically commented on was the phenomenon of using debt interest to reduce tax liabilities (see Boots), and removal of this allowance, amongst others.

I think this is a fantastic idea. Local governments should be given more tax raising powers and national taxes should be fair, simple, and transparent. Right now they're unfair, ridiculously, ridiculously complicated, and due to that complexity utterly opaque.

In short welcome to Britain Mr Investor, here's your tax rate, this is all the tax you'll pay, no more no less, thank you for your business. Investors, be they corporations on private individuals, like predictability and stability, this definitely provides that.

Needless to say that the government will ignore any sensible ideas

[mertle]

just dont trust motives of tax alliance group.

Reducing taxes we will be in dangerous waters. Finding ways make sure these pay up is what we need to be doing.

If that means reward for job creating fairer wages system for the businesses. Then maybe we need to give carrots for good behavoir. Show reward to hard workers show you pay your taxes then give them reward for this by tax reduction. Dont do it then taxed normally close the loopholes.

Giving tax cuts to all wont solve our problem.

All for simplifying but there will be blackhole where we going find that shortfall. Unless the wages of workers goes up significantly so we can tax them more we will be in trouble.

You can guarantee they will have there beaving accountants find a ways to get round this I am sure of it.

Why do we assume them paying less will mean they wont try find ways to get out paying. We now got hardcore culture who feels tax is not theres to pay.

The rich for the rich is thats who behind the tax alliance they only interested in the top 2%.

they are bunch conservative lobbyists who set up 2004 due to conservatives abandoning traditional tax cutting measures.

They want the government to cutting public spending massively which is what we seeing now. I would be not shocked that certain MP's are signed up. Its pressure group which needs to be shoved into the ground. They have big american influence links with amerecan tea party movement.

only 2 things on there mind they dont care how lower taxes, less public spending by governments.

They may rebadge there motives to look fairer but they smoke screen.

Let them dictate a government policy like letting dracula run blood bank.

[Derek]

Originally Posted by mertle

Reducing taxes we will be in dangerous waters. Finding ways make sure these pay up is what we need to be doing.

Making the system flat removes a huge number of loopholes and ensures the tax on wages and other earnings is easy to implement.

Originally Posted by mertle

Show reward to hard workers show you pay your taxes then give them reward for this by tax reduction. Dont do it then taxed normally close the loopholes.

So we should reward high earners by increasing the higher levels of taxes continuously then instead and punish them for being successful?

Originally Posted by mertle

They want the government to cutting public spending massively which is what we seeing now.

Really? You do know that the government is spending MORE each year than the last government and when inflation is taken into account the reduction is in the 1-2% range.
Hardly a massive spending reduction.

[Ignitionnet]

Originally Posted by mertle

Reducing taxes we will be in dangerous waters.

Ignoring the rest of your post as this is quite enough really. There is nothing dangerous about reducing taxes, it's something that should happen as much as is feasible and practical to ensure that employees and employers retain as much of their income and capital as possible.

[m8internet]

I doubt anything will happen

Political parties base manifesto proposals on cutting Income Tax, so they increase National Insurance; then vice-versa

Some people are exempt from paying one or the other, so applying a single rate would be unfair to these people, going from paying nil to 30%

Finally, if the basic tax rate changes from 10% to 30%, the tax thresholds will have to change
If they aren't changed then that would be a political hot potato as people see their pay packages reduced

Also, how would this affect those paying pensions, which are currently based on National Insurance contributions and income tax free?
I've spent the last 20 minutes trying to work out how my plan would be affected and can't see any solution to that

[Ignitionnet]

Basic rate is 20% and this rolls in NI...

[nomadking]

I thought there were new proposals in the Queen's Speech for a flat-rate state pension that would eliminate pensions being based on NI contributions. State pensions are taxable, but as the amount tends to be below the tax allowance, they appear tax-free. If you have another income then the state pension is meant to be included in your taxable income. That is something the recent budget highlighted. Some people were not including it on their tax returns etc.