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.
- posted 6 years ago