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Cut tax to flat 30% rate, axe stamp duty and ditch national insurance: An expert’s plan to boost the economy

May 21st, 2012 FAKE NEWS for the Zionist agenda

By
Political Correspondent


PUBLISHED:

19:08 EST, 20 May 2012

|

UPDATED:

02:01 EST, 21 May 2012


Demand: George Osborne has faced calls for a flat rate of income tax

Demand: George Osborne has faced calls for a flat rate of income tax

The Chancellor should introduce a flat rate of income tax and abolish levies such as national insurance, stamp duty and inheritance tax to boost the economy, experts have said.

They are calling for a single income tax rate of 30 per cent and the abolition of eight major taxes, including corporation tax and air passenger duty.

The 2020 Tax Commission, a joint project from the Institute of Directors and the TaxPayers’ Alliance, says the changes would lead to a tax cut of £3,400 for the average two-earner household.

A 400-page report from the group concludes that the measures could lead to an 8.4 per cent increase in the UK’s gross domestic product after 15 years – the equivalent of lending £5,000 to each family.

Allister Heath, chairman of the commission, said: ‘It is time for Britain to make a vital choice between tweaking the status quo and letting our economy continue to be crippled by complex and punitive taxes, and drastically changing course with a radical but realistic plan for a tax system fit for the 21st century.’

Under the plans, both employee and employer national insurance contributions would be scrapped and replaced with a single 30 per cent rate of tax on income, with a £10,000 personal allowance.

Plans: Allister Heath, the chairman of the 2020 Tax Commission, says the current tax rate is 'crippling' the economy

Plans: Allister Heath, the chairman of the 2020 Tax Commission, says the current tax rate is ‘crippling’ the economy

Corporation tax and capital gains tax would be replaced with a 30 per cent tax on dividends, interest and rent, and inheritance tax and stamp taxes on land and shares would be dropped, as well as air passenger duty. Fuel duty would be cut by 5p.

Overall, taxation would be limited to a third of national income – as would public spending. The proposed flat-rate income tax would increase the budget deficit by £49.1billion in its first year if the changes were not phased in, or if there were no further cuts to public spending. However, the commission predicts that the boost to the economy would result in a £35billion fall in annual borrowing after 15 years.

It says the measures would result in a tax cut of around £3,400 for a two-earner household with an income of £28,000.

■ Collecting taxes costs as much now as it did 50 years ago, figures show. Despite technological advances, bureaucracy accounts for £1.14 of every £100 collected, compared with £1.16 in 1958.

A report from the TaxPayers’ Alliance, based on data from the Paris-based Organisation of Economic Co-operation and Development, revealed that since 2001 the annual cost has been less than 1 per cent of tax income just once.

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A report from the TaxPayers’ Alliance, based on data from the Paris-based Organisation of Economic Co-operation and Development, revealed that since 2001 the annual cost has been less than 1 per cent of tax income just once.I wonder what year that was? Tell us DM.

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Beware: this plan would involve playing 30% not 20% tax on pensions and savings.

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CJ Newbury. It depends whether you are a pensioner or not. Pensioners do not pay NI so in that case you would be correct. Out of your £1 you currently keep 80p but would under the proposal keep 70p. For those working and paying NI of 12% they pay NI on earnings above a lower limit. So very roughly they would be very slightly better off. Those currently paying 40% plus NI would be a lot better off and those paying 45% tax would be even better off. The hardest hit out of these proposals are the pensioners who would see their tax go up by 50% i.e. from 20p in the £ to 30p in the £.

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30% Flat rate it should make the very rich pay their tax apart from putting old age pensioners even worse of if they any addition income from their works pensions. Workers just above the benefit cut off point and those with no children. Great now we even want to widen the gap voluntary.

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sounds good to me on 25k i would be £140 a month better off

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For all those saying exempt for pensioners, can’t you see what will happen? All the super wealthy will “retire” taking their hundreds of thousands even millions a year pensions instead of their massive salaries and pay no tax. Pensioners does not mean poor, hard up. A great many pensioners have very tidy nest eggs on which they have already not paid any tax. You can’t blanket a group together like that. Even in the pensioner ranks there are haves and have nots.

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Is it the 1st April again? Are you mad. If you did that we would not need a Chancellor of the exchequer at all. In fact that good we could save Billions if we got rid of all the Politicians altogether……….9That one is just as daft as this proposal.

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I’d be about £20 worse off

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The Tax Payers Alliance. Ah yes, that well known socially concerned for the rich alliance. If they had their way this bunch of numpties would have us back to sending 8 year old boys up the chimneys again.

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Wrong – You’ll be be paying 30% tax instead of 20%, but NI contributions of around 13-14% will be scrapped, therefore you’ll see a net gain. Unless you’re a pensioner. Another poster who didn’t read the whole story
– John Smith, Kimberley, 21/5/2012 09:48
And if they scrap the lower threshold at which tax becomes payable?

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