Tax reform

Posted on 13-09-17 by Daniel Schofield Number of votes: 0 | Number of comments: 1

Labour should be radical and commit to a complete overhaul of the tax system in its next manifesto. A new tax system should be built so that it increases overall revenue for the treasury, but reduces the tax bill for those earning the least and is easily enforceable

I would suggest that Labour commits to a Flat-rate income tax and NICs with universal tax credits, referred to as option 4 in the attached IFS Study.

In addition to this, Labour should replace council tax and business rates with a Land levy.

Labour should then commit to scrapping corporation tax altogether. Instead we should extend stamp duty to share transactions, and also introduce annual fee for being a UK company, using a fee scale based on company size and fully tax dividends as part of the flat income tax previously mentioned.

I would suggest scrapping the first £5000 worth of dividends free rule and instead raising the personal allowance for everyone up to the annual income of someone on the top rate of minimum wage before tax, raising the personal allowance to £15600. Income tax and NIC's would only start from £15601 and upwards per individual.

Linking the personal allowance to the minimum wage will ensure we are always helping the working poor.





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