A centre-left argument for flat tax - combined with CI it would be simple and just

UKIP have recently mooted the idea of a flat 30% income tax, and even from a leftist background there is a need for something simpler and actually paid as opposed to avoided.

I'm happy with an even higher 50% flat tax in order to abolish all forms of means testing. MT is a marginal tax rate on low and lower-middle earners that frequently exceeds 100%.

So, if you were say on the dole or on the sick and felt well enough to do a few weeks work, you could keep all your dole and half of your wages. Unemployed bloke would be up a few hundred quid, as would the taxman. Win/Win . By contrast, no one is going to get off their arse if it leaves them worse off, it's just plain illogical.

I'd cut a lot of other taxes though, including all fuel and road duty for taxis and buses. Those going to college could claim housing benefit and ESA which means that lower-class and mature students with families could afford the same educational chances as an 18 year old with wealthy parents. In addition, course fees would be refunded on graduation, leaving only the interest as student debt, which could be easily paid whilst at college through pizza delivery and so forth.

Though many of my ideals are centre-left, the population and businesses are indeed over taxed. What's important is that the tax is as least damaging socially and economically i.e. doesn't drive people and firms bankrupt. Too much tax is levied at present on those who have a lot of trouble paying it, and marginal rates can indeed exceed 100% in some cases.

Take healthcare costs. Private healthcare will generally get you faster appointments and better cleanliness, staff manners and diet but differs little over the NHS in most other respects.

So prescription or dental charges would be free for the unwaged, yet the middle income and the rich would both have to pay a similar amount for a similar service. Yet in terms of proportion of income, the rich have to pay a lot less for healthcare than the middle.

And that's symptomatic of the problem- the British state loves to moan about lazy and feckless citizens but slaps down anyone who tries to make an honest go of it.

Reply to
andy wainwright
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Tax avoidance is not related to the tax rate. It's about exceptions and collection.

The problem with a flat tax rate is that it would shift the overall tax burden from the rich to the poor, which I would not be in favour of. There's no doubt that taxation in the UK is far to complex but that does not mean that all simplifications would be positive.

Agreed.

I am be in favour of giving everyone equal chances. However I don't see how forcing all students to do pizza delivery is a good idea[1]. Students should be allowed to concentrate on their education. Some Universities specifically forbid students working during term-time. How about abolishing Student fees altogether?

Marginal tax rates should never reach 100% (do they actually?) and should never increase as income reduces.

--snip--

True.

[1] Assuming that there are 2.5 Million pizza delivery jobs vacant.
Reply to
Mark

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