Last week we had the IDS pension ideas, lifted nearly wholesale from our Welfare policy. Today we learn from Alison Little in the Daily Express that their brand new Quango, the Office of Tax Simplificationis advising the Chancellor to bring in another of our policies in the forthcoming budget.
THE biggest tax shake-up for decades which would merge income tax and National Insurance under a single rate is being considered by Chancellor George Osborne.Lets see what the UKIP policy states,
It could save companies and the Government hundreds of millions of pounds a year, say experts.
The plan emerged after the Chancellor appointed experts last year to dramatically simplify Britain’s complicated tax system.
His response to the Office of Tax Simplification (OTS) report will be made in his Budget on March 23.
A flat tax system for BritainThis of course is from our policies as they stood for the General election in 2005, that is the one before the last, so the numbers are a tad out of date,
...
- and merging existing income tax bands and employee’s National
Insurance contributions into a single flat income tax at a rate of 33%.
UKIP’s proposalBut we are in the process of a full scale policy review and new figures and details will be available shortly.
recognises that national insurance payments (and self-employed NI) are essentially an
additional income tax rather than contributions to a social fund. We would combine
income tax and employee’s NI contributions into an income tax at the single rate of
33% for all income above a raised personal allowance of £9,000 per year.
Of course we are delighted with these proposals from the Treasury Quango, and only hope that the Chancellor will take them on board.
While he is at it he should look the rest of the document, it could save him and his experts a great deal of time, and the country a great deal of money.
How about no income tax on the minimum wage? Or transferable tax allowances. Just remember people. UKIP is only about the EU 'n Immigration, so you best not trouble your little heads about the rest of the manifesto.
9 comments:
The problem with combining income tax and NI is that you increase the rate paid on savings income which many pensioners depend on. So you would have to have a reduced rate for investment income, otherwise it would be politically unacceptable.
Great story - Linking here:
http://www.westbournemouthukip.com/main.htm
Well spotted.
Curmudge, there we go, special pleading already, probably on behalf of the banks?
What makes the big difference to your interest income is the interest rate, not the tax rate. I would rather earn proper interest rate of 5% and oay 30% tax and earn 0.5% interest rate and pay 20%.
Actually, thinking about it, the higher tax would of course apply to pension incomes too. So it's a complete political non-starter unless pension and savings income is exempted.
From David Lonsdale
Income tax is only 27% of total tax. If Gordon Brown had kept government spending in line with inflation from 1997, he could have completely abolished income tax. Check out the figures for yourself on the Treasury site.
Lets aim for zero income tax and zero Corporation tax. That would stimulate growth. Leaving the EU would save us 17.5 billion on 2009/2010 figures. that would be a good start
2011 census. Clearly states that information will be kept private for 100 years. Why does it not state that under EU Legislation all information can be shared with member states? I think that once information leaves this country then our privacy laws will be useless!!!
It's not only the ConDem coalitions stealing our policies even the SNP are trying to latch on to our Referendum Policy. http://is.gd/wMHqRh Still they do say imitation is the best form of flattery
"Actually, thinking about it, the higher tax would of course apply to pension incomes too. So it's a complete political non-starter unless pension and savings income is exempted."
Or by making the state pension non taxable & sticking the higher rolled up tax & NI onto private pensions only? There are all manner of ways to do things which are administratively cheaper than the nightmare system we have at present. Instead of coming up with ever more reasons something is a non-starter, why not think how you would make it actually WORK!
Here they go again!
http://order-order.com/2011/03/20/tax-transparency/
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