low paid, pensioners, savings and tax

BillJones

zagfles wrote: »

Simply give everyone a citizen's income which is based on circumstances (family, disabilities, housing, age, residence, but not income). Basically give everyone what someone in their circumstances on out of work benefits gets.

How about, as an alternative, having a personal allowance of £10k, and then a flat rate of tax on all income at 30%?

I seem to recall reading that tat would give a slight increase in the tax take from the current system (estimated, of course, we can never be certain), and has the benefit of being far simpler than your scheme.

It's nicely progressive, but not hugely so.

evenasus

BillJones wrote: »

How about, as an alternative, having a personal allowance of £10k, and then a flat rate of tax on all income at 30%?

I seem to recall reading that tat would give a slight increase in the tax take from the current system (estimated, of course, we can never be certain), and has the benefit of being far simpler than your scheme.

It's nicely progressive, but not hugely so.

As a pensioner, I already have £10,500 personal allowance, 10% on the first£2,880 (2014/2015) savings interest, with 20% on the rest of the savings interest.

So, no thank you to 30%.

crisp

Archi_Bald wrote: »

How do you suggest the country raises the taxes that are needed to pay for the social infrastructure of the country in your "tax only once" world?

There would only be 2 alternatives - cut the services back to the available money, or 2) raise income tax.

Neither alternative would be terribly popular, don't you think?

Im sure savings can be found in this vast and ever expanding public budget as well as reallocations. I wouldnt be jelly legged about it. In fact, I would do it with gusto, but Im sure the mandarins et al will block much of it.

crisp

is there a readily available chart showing the tax burden and public spending as a % of GDP? Im curious to see if its radically altered over the last 50-years.