We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Council Tax Reform

135678

Comments

  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    While the low paid/non earners will always have benefits for these occasions, I still think everybody should pay the same in some way. So link it to people/earnings. Not property.

    It is easier to count people/tax income than it is to value property.

    At my last house I paid 10% of my take nett salary (6% gross) on council tax for a Band C.
    Many others pay an even higher proportion than this.
    On a council tax Band A property I still pay 4-5% of my gross.

    I'd rather pay 2-3% extra income tax.
  • ....It is easier to count people/tax income than it is to value property......
    No that's the point of the American system, it's easier to base it on last sold price.

    By the way, I do think local income tax is the fairest, least worst, system but I think it may be the most costliest to operate.
    A house isn't a home without a cat.
    Those are my principles. If you don't like them, I have others.
    I have writer's block - I can't begin to tell you about it.
    You told me again you preferred handsome men but for me you would make an exception.
    It's a recession when your neighbour loses his job; it's a depression when you lose yours.
  • Whatever means are used to collect the necessary funding is flawed because, they want too much for too little.

    We all know contractors charge top dollar if work is for the council. And far too many councillors are Freemasons.

    :)

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • noyk
    noyk Posts: 253 Forumite
    lynzpower wrote: »
    the difficulty with this sort of approach is "1% of what" what you bought the house for? What its valued at today? What?

    My grandparents bought thier house for 200 pounds in the 50s, its "worth" about 600k now.

    LIkewise my parents bought thier house for 89 about 10 years ago, one on thier road sold for 340 back in 04, now ones on the market on thier avenue for 210, not sold.

    Im certain the councils would not be able ( or skilled enough- who is, even EAs are not) to value the properties. In peaks, slumps & crashes, would the council have to literally constantly survey.

    Youd have this weird relationship where owners want thier house to be worth more in the marketplace, but worth less to the council.

    I just dont think we have the skill base or infrastructure to deal with it.... certainly not at the moment.

    What did they say guy on this issue?

    Your insinuating EA's have skill ?! Thats just wrong imho. ;)
  • moonrakerz
    moonrakerz Posts: 8,650 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Poll tax takes no account of ability to pay or income.

    Why should it ? Tesco don't charge pensioners less than Richard Branson, so why should they pay less for services from their local Council. There is almost an argument to say that those who are less well off should pay more, as they probably use the local services more.

    I agree with the people who say that the Poll Tax was a fairer basis for local taxes than the mess we have now, which is just the old rating system under another name.
    Or perhaps put the whole lot on general Income Tax - most of the money your local Council spends comes from Central Government anyway. The mechanism for collecting it is already there - can you imagine the all the extra staff your local Council would employ to collect a Local Income Tax !

    We have to find a better system for everybody - how to allow for those who genuinely can't afford to pay should be looked at separately, trying to do that as part of the local tax system just makes any reform unmanageable.
  • (Post 26) ...But people who are on low incomes do have a choice of what to buy in Tesco, or whether to use Aldi instead.

    I think ability to pay SHOULD be taken into it. I'm not necessarily talking pensioners here - some pensioners are very well off - but anyone on a low income for whatever reason.

    The reason I don't agree with a local income tax is that again we are getting back to only some people paying. Under a poll tax type system, everybody would pay something, with the very poorest among us maybe only paying a tenner a month. But still paying something.
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    moonrakerz wrote: »
    Why should it ? Tesco don't charge pensioners less than Richard Branson, so why should they pay less for services from their local Council.
    Tesco also don't force people to buy champagne and lobsters.

    If you are going to ask why a pensioner should pay less than Richard Branson, you could equally well ask why a pensioner should pay for schools.

    Ability to pay is a serious issue. Anybody who thinks it is not is clearly earning enough.

    It is proven that rich people at the moment pay a SMALLER proportion of their money for council tax than poor people.

    e.g.

    Two identical houses.
    1 person in each. Council Tax bill is £1000 (inc single person supplement)

    H1] Person earns £15k. Council tax is 6% of their income
    H2] Person earns £30k. Council tax is 3% of their income

    So Richard Branson IS paying less already.... a LOT less.
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    moonrakerz wrote: »
    can you imagine the all the extra staff your local Council would employ to collect a Local Income Tax !
    There are already the council tax people to do this... or make it a national income tax collection. So it was just a box on a self-employed form, or a box on your payslip.
  • BobProperty
    BobProperty Posts: 3,245 Forumite
    1,000 Posts Combo Breaker
    noyk wrote: »
    Your insinuating EA's have skill ?! Thats just wrong imho. ;)
    At least one of them did for several weeks......






    while Lynz worked there :rotfl:
    A house isn't a home without a cat.
    Those are my principles. If you don't like them, I have others.
    I have writer's block - I can't begin to tell you about it.
    You told me again you preferred handsome men but for me you would make an exception.
    It's a recession when your neighbour loses his job; it's a depression when you lose yours.
  • Hereward
    Hereward Posts: 1,198 Forumite
    Tesco also don't force people to buy champagne and lobsters.

    If you are going to ask why a pensioner should pay less than Richard Branson, you could equally well ask why a pensioner should pay for schools.

    Ability to pay is a serious issue. Anybody who thinks it is not is clearly earning enough.

    It is proven that rich people at the moment pay a SMALLER proportion of their money for council tax than poor people.

    e.g.

    Two identical houses.
    1 person in each. Council Tax bill is £1000 (inc single person supplement)

    H1] Person earns £15k. Council tax is 6% of their income
    H2] Person earns £30k. Council tax is 3% of their income

    So Richard Branson IS paying less already.... a LOT less.

    House two is paying exactly the same amount as House one, its juts hapens to be a smaller proportion of their income; therefore, Richard Branson is paying the same.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.2K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.3K Spending & Discounts
  • 245.2K Work, Benefits & Business
  • 600.9K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.