Before any change is made to the basis of taxation, the small matter of Old Age Pensions must be addressed. To qualify for a 100% old age pension a male must have a minimum of 44, qualifying-year subscriptions: a female 39. QYS. Currently, the basic pension is £80-odd pounds per week. I propose better tax reforms would serve UKIP better in the battle to win votes.
We should support a basic minimum wage of say £5.60. per hour = equal to £224 per week gross, currently still subject to taxation. That £224, should be the maximum aggregate payment made by the Dept. Social Security to any applicant. The O.A.P. should be set at two-thirds of that figure; £150. basic, for 44 qualifying years. I believe that the basic wage; OAP (basic rate payment), and Social Security maximum allowance payments, must have an identifiable relationship one with another. The level at which income-tax commences should also be based on the basic wage. £224 X 52 weeks =£11,648. (better than UKIP's figure). If 'the name of the game', is cutting bureaucracy, the three areas which I have identified are the biggest offenders. A low minimum wage, results in 'wages' being provided by government funded payments. Those in receipt of the basic OAP, are interviwed by paid officials, to see if extra help can be found for them.
Social Security claimants, and many have genuine problems, again, involve many bureaucrats, It cannot be just for aggregate welfare payments given to claimants (untaxed), to be considerably higher than the basic minimum wage, which is taxed.
The flat-rate tax being proposed by UKIP, in my opinion cannot be acceptable. For it to be just, taxation must founded on rates which are ad valorem. This is why consumer taxation has only a limited scope. Not only are they unfair in principle, but are collected by the most expensive bureaucratic route.
With an ageing population, a reduced labour force (capital not labour based) and virtually all employment to be of a limited contractual duration; this is no time for experiments in basic-rate taxation.
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