marcus

I find UKIPs 33% flat rate tax policy(no NI) has alot of merit in it.
I am interested to know what others think of UKIPs flat rate tax policy?
The link for further details about it is below

http://www.ukip.org/ukip/images/stor...ttaxpolicy.pdf

Alex McKee

The Lechlade Group, which I and several others here were members of, were very keen on this. I was particularly keen. Our chairman, David Lamb, contributed to the actual policy you read there.

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SponPlague

I remain keen.

Anthony Butcher

I like the idea but have no real understanding of whether it is genuinely feasible or realistic in its financial goals.

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harryaldridge

It is a good idea and feasable. Whether is is politically feasable is another matter.

The two fundamental planks of a flat tax policy is that it is incredibly simple, because reliefs/allowances are swept away to leave just a personal allowance, and it is fair since everybody pays the same marginal rate.

There would be massive administrative savings by merging income tax and national insurance, and ending many reliefs. Also following the "Rabushka-Hall" model as UKIP's policy seems to do, shifts towards taxing consumption and not income (not by consumption taxes, but by extracting the tax at a different point in the chain - quite a complicated concept but beautifal in administrative and moral simplicity).

Another concept which is introduced is that people cannot, bascially, vote to increase taxes on another portion of society. i.e. the problem of the tyranny of the majority where peope might vote to increase taxes on the rich. Under a sinlge rate if people want the rich to pay more they cannot do so unless they are themselves prepared to pay a higher marginal rate. The inherent fairness in ensuring that the whole of society shares the burden equitably, and does not allow parts of society to deprive another part of their private property without also suffering the same is wuite attractive. Indeed higher earners would pay their fair share since the lowest earners would have a sizeable personal allowance to lift them out of tax and reduce their average tax rate, while higher earners would lose certain reliefs and allowances and likely lead to an increase in their average rate (although a reduction in marginal rate).

I think the flat tax policy is a good one. It does need tightening up a bit, phrased appropriately to explain the underlying benefits and fairness, and also detailed a little futher to explore the impact on different groups of society (i.e. examine the budget constraints on single individuals, families, pensioners, etc). But we have a great policy base to work from.

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British-Conservatism

It's quite feasible in costing terms.
But not as UKIP suggests paying for it.
Last I read UKIP will finance it by government borrowing,
I wouldn’t myself cut any taxes until we have paid off the national debt.

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jgrabham

I was thinking it's a bit high, but as it includes Nat. Insurance I'm game.

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Geoffrey Collier

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.

SuperiorSteve

I like the idea of having a flat rate of tax which combines tax and national insurance. I think we should also have a higher personal allowance.

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rjt

I like the idea of a flat tax , who would not but remember the poll tax was a local flat tax and look what happened there.

I agree with British Conservatism as well, no tax cuts until national debt is paid off, go down that route and you are robbing Peter to pay Paul and if the ecnonomy does not grow as predicted you then have to pick the pockets of both to cover it and people do not care for it.

Nice idea from UKIP but more work to do I feel.

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