Flat tax seems to be taking off...

[Mailman]

However I see the tories plans are just a joke with several different banks depending on what you earn. So why bother with a flat tax if all you are doing is swapping one complicated form of income tax for another complicated form of income tax?

Mailman

[Lucifer Box]

Maybe it's just a sap to get the scheme in and then the administration can make it flatter after the second post-election budget? Don't forget, due to years of NL conditioning most people, even those who would end up paying no tax at all, think flat tax is in some way "unfair" by not penalising the wealthy. Both NL and the LibDems would successfully crucify any party presenting a truly flat tax to the mindless electorate we have.

[tim123]

Maybe it's just a sap to get the scheme in and then the administration can make it flatter after the second post-election budget? .

So what exactly is the difference between the scheme that we have now with the 10% and 40% bands removed, and flat tax.

What is it that has to fundamentally change first before tax rates can be flattened?

tim

[milanbenes]

"What is it that has to fundamentally change first before tax rates can be flattened?",

the Government by any chance ?
Milan.

[Lucifer Box]

So what exactly is the difference between the scheme that we have now with the 10% and 40% bands removed, and flat tax.

What is it that has to fundamentally change first before tax rates can be flattened?

tim

Presumably that all allowances, rebates, credits and any taxes other than income, corporation and VAT are abolished. At least it would be a step in the right direction to making the taxation system more transparent, and cheaper 'n' easier to run - which is a good objective in its own right. Maybe when the obvious benefits and saving for this are realised, it will be more politcally acceptable to start flattening the bands (the politically astute Chancellor would start by raising the bottom band up).

[wendigo100]

What they really need to do is get rid of National Insurance Contributions as well, so you just have one number to worry about.

[xoggoth]

No No No! As I keep saying, in these days of computers, tax should be calculated by complicated equations preferably involving random imaginary numbers.

[wendigo100]

No No No! As I keep saying, in these days of computers, tax should be calculated by complicated equations preferably involving random imaginary numbers.

What, like Duckworth/Lewis?

[The Lone Gunman]

The fundamental change is in the thinking of the general public. As stated earlier, Joe Sun reader thinks it is "only fair" that higher earners pay a higher percentage of tax.

Once that idea is banished then you may be able to introduce a flat rate.
Put NI into general tax and make all personal income (from whatever source) taxable at say 20%. No allowances or offsets.
1 simple easily administered tax. Removes all need for things like IR35.
I would also suggest that companies are covered by the same tax law in that any monies "transfered" outside the country are taxed at the same rate so they can not make a huge profit in the UK and then hide it offshore to avoid UK tax.
If it is paid out from anywhere it is taxed at the flat rate.

[BoredBloke]

"What they really need to do is get rid of National Insurance Contributions as well, so you just have one number to worry about"

They will never do that as it will allow everybody to see clearly how much money is being taken off them. Personally if I were employing staff, I would show the employers NI on their wage slip also, just so they can see how much the govt are actually earning on their behalf.

How is your new job going Marc?