🗳️ A message from Martin Lewis:

"It’s the biggest consumer decision most people will make this year – so, as always, we want to ensure you know what you’re buying… The general election will impact almost every area of consumer life, from economic strength, to benefits, consumer rights, health of the high street, work rights, rents, homebuying and more. Yet some of these areas get glossed over amongst the political fire that flies during a campaign.

"That’s why since 2010 we’ve run the MoneySavingExpert Leaders' Debate every general election. We ask the leaders of the main parties to get into the nitty gritty of the biggest personal finance and consumer questions you, me and the MSE team have. This isn’t about party politics – it’s about practical policy.

"So we want your suggested consumer finance questions. We can’t include them all, but we’ll try and include the most common, as well as looking for powerful individual stories – so we can help you cut through the noise."
This board is now closed to questions. Thank you to everyone who participated! Stay tuned to MSE to see how the leaders answer the questions that got selected.
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.

Fully reviewing and replacing the tax regime

Options
Will the incoming government commit to a full review of the tax system, followed by replacement or high levels of reform?

The current tax system is overly complicated, it is the most complicated in the world, governed by more legislation and guidance than in any other country. This not only makes it inefficient but also means that there are hundreds, if not thousands of loopholes as well as meaning tax advisors are often needed for tax planning where as in other countries that submission would be a simple online form.

The income tax regime should be reviewed, we have the largest tax free allowance in the EU, the bottom two thirds of earners have the lowest effective rate of income taxation in the EU, where as the top third have the fifth highest. If we reduced the tax free allowance to £2,000 (around the EU average), and combined Income Tax and National Insurance and then amended the rates to 35% up to £60k, 45% up to £120k and then 49% above that it would generate billions, also bringing us into line with Scandinavian countries. Finally married/civil partnered couples should be able to joint file for tax purposes, sharing allowances and combined thresholds.

Corporation Tax should be reformed to make it similar to the German and Scandinavian models where there are large allowances to encourage reinvestment into the business, but higher rates on businesses that purely extract profit. This combined with a withholding tax on dividend, meaning that base rate income tax is always due unless the shareholder is a charity or pension fund.

Economically damaging taxes such as SDLT and morally unfair taxes such as Inheritance Tax should be abolished.

Council Tax should be replaced with in individual community payment and local income tax, making sure every adult contributes to the local community, but that those with the greatest incomes also contribute more.

Benefits should be fully reformed making them both taxable and and contribution based, but greatly increased for the disabled who are woefully under provided for. Housing benefits should be levelled nationally so that taxpayers are not subsiding people to live in incredibly expensive areas, far more than the average taxpayer can afford, this would also have the benefit of not contributing to the overcooking of the housing market in London and the South East. 
6
6 votes

Leaders' Debate · Last Updated

Meet your Ambassadors

Categories

  • All Categories
  • 344.7K Banking & Borrowing
  • 250.6K Reduce Debt & Boost Income
  • 450.4K Spending & Discounts
  • 236.8K Work, Benefits & Business
  • 610.6K Mortgages, Homes & Bills
  • 173.8K Life & Family
  • 249.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards