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Council Tax Reform

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Comments

  • I feet the PRINCIPAL of poll tax is fairer (i.e. we all have the services; we all pay the tax). However I do think ability to pay should be taken into consideration and the poorest amongst us should be entitled to ebnefits as they are now.

    Having a rate based on the value of your house doesn't take in ability to pay, either.

    It would if those with little income but massive equity (the elderly folks in the 600K house for example) could bequeath a % of their house to the council on sale or death, whichever comes earlier in lieu of council tax.
  • Those on lower incomes should work harder to earn more thereby reducing the %age.

    In a block of 12 houses, my pensioner parents are the only ones paying CT. Yes, they earn enough to pay their way and have the self-respect to have done so all their lives, hence the pension.

    It really grits when the benefit grabbing low life around them are the ones who cause the CT to be so high.

    I earn more because I work harder/did better at school/got lucky. If earning less meant that I paid less for the things in life, what would be the incentive to earn just enough not to claim benefits?

    :)

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • Guy_Montag
    Guy_Montag Posts: 2,291 Forumite
    1,000 Posts Combo Breaker
    One significant benefit of a land value tax is that it makes it much more difficult to evade tax. For example your Russian tax exile when buying a £50m Kensignton mansion will pay something in the order of £4k council tax, roughly the same as my parents do in their new-build*. With a 1% tax they would be paying 500k pa with no way of avoiding it.

    *One of the many unfairnesses with the current system is that my parents sold their old house (Band D) & bought a cheaper new-build. The new-build was rated on it's sale price but on the scale from 1990, making it Band G.
    "Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
    Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
    "I think I'll become an alcoholic," said Betty.
  • amcluesent
    amcluesent Posts: 9,425 Forumite
    No surprise NuLabour are floating this idea, they want to take 1% of your house over (say) a lifetime of 60 years, then the last 40% by not indexing inheritance tax. So the socialists get 100% of the value of your house - remember, to the hard left (like Gordo!) property is theft! Capatalist toffs (spit!) deserve to be bled dry...etc. etc.
  • guppy
    guppy Posts: 1,084 Forumite
    Part of the Furniture Combo Breaker
    It is easier to count people/tax income than it is to value property.

    Not when people don't want to be counted it isn't. You must be too young to remember the poll tax. Councils are still trying to collect it 20 years later (seriously).

    Any idiot can hide themselves or their income (for a while at least), but hiding a house requires David Copperfield.

    The 1% idea is already being used in Northern Ireland, except they pay just over half a percent.

    I can't see any Government daring to bring the poll tax back, it only benefited the childless rich. With people leaving home later due to high house prices, it would go down like a cup of cold sick with the electorate. Likewise this idea for different reasons. Likewise this 1% idea, for different reasons.

    This whole story results only from a Conservative Press release anyway, curiously dropped on a Saturday in time for the Sunday papers. (That's just stating a fact, I don't have any allegiance with any political party).
  • moonrakerz
    moonrakerz Posts: 8,650 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    amcluesent wrote: »
    No surprise NuLabour are floating this idea, they want to take 1% of your house over (say) a lifetime of 60 years, then the last 40% by not indexing inheritance tax. So the socialists get 100% of the value of your house - remember, to the hard left (like Gordo!) property is theft! Capatalist toffs (spit!) deserve to be bled dry...etc. etc.

    AND - if you are not totally dependent on the state and are actually earning money - stand by to be bled some more !
  • macaque_2
    macaque_2 Posts: 2,439 Forumite
    A number of states in America use this system if not all of them. Problems are (especially at present) falling revenues for the local authority as prices fall, plus people not paying them due to repossession (and "short sales"). Some areas also have protected properties due to voter intervention from groups like pensioners where their fixed incomes were getting caned by rapidly rising prices. California and Florida come to mind.
    It works OK when everything is going along nicely, but when the ups and downs of the market hit, it starts to hurt.
    Tax revenues fund public sector jobs and these employees now represent the second highest paid group in society (after city jobs). They also enjoy the best perks and pension terms. Why should this privileged group be insulated from economic reality. If taxes go down, the public sector fat cats should share the pain with the rest of us.

    People speculate as to how to raise local tax. The real problem is how it is spent rather than how it is raised. The cost of public services could be slashed dramatically if public sector employees stopped treating sick leave like holiday entitlement, stopped treating early retirement as a right and were sanctioned for laziness and incompetance. From what I have been able to work out, more than 70% of public sector jobs contribute little or nothing to society.
  • Andy_L
    Andy_L Posts: 13,082 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    macaque wrote: »
    Tax revenues fund public sector jobs and these employees now represent the second highest paid group in society (after city jobs).

    Do you have a cite for that - it strikes me as a very vague statement (seeing as how public sector jobs range from Brain Surgeon to just above minimum wage admin assistants)
    macaque wrote: »
    They also enjoy the best perks and pension terms.

    Pension probably, perks no - distinct lack of Company Cars, Health Insurance, Share options etc in the Public Sector
  • Guy_Montag
    Guy_Montag Posts: 2,291 Forumite
    1,000 Posts Combo Breaker
    macaque wrote: »
    Tax revenues fund public sector jobs and these employees now represent the second highest paid group in society (after city jobs).

    *snipped for the love of god*

    From what I have been able to work out, more than 70% of public sector jobs contribute little or nothing to society.

    generally can we try to keep this on topic rather than disappearing up your own !!!!!! with rants about how awful/lucky public sector employees are. If they get such a good deal become one & stop whinging.

    We would all like lower taxes, that's not the point of this discussion, the question was about alternatives to council tax.
    "Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
    Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
    "I think I'll become an alcoholic," said Betty.
  • macaque_2
    macaque_2 Posts: 2,439 Forumite
    Andy_L wrote: »
    Do you have a cite for that - it strikes me as a very vague statement (seeing as how public sector jobs range from Brain Surgeon to just above minimum wage admin assistants)

    Fair comment. One has to do it on a like for like basis but here are some links.

    http://press.iod.com/newsdetails.aspx?ref=238&m=2&mi=62&ms=
    Public Sector vs. Private Sector Pay
    In 2005, managing directors in the public sector were paid less than those in financial services, private services and the manufacturing sector.
    In 2006, the survey shows that they have now shot up to being the second highest paid managing directors, averaging £85, 000 a year. Managing directors in the financial services come out on top yet again on an average salary of £113, 450. Meanwhile, their counterparts in the manufacturing sector have seen their pay decrease by over £3,000.

    http://www.onrec.com/content2/news.asp?ID=12540
    Public Sector Pay Outstrips Private Sector
    The Hay Group research reveals that for the first time, public sector starter salaries are above those being offered in the private sector.

    The harsh reality is that whilst tax has been ballooning, public sector workers have been filling their boots.
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