rjb wrote: ↑24 Mar 2024, 3:29pm
pete75 wrote: ↑24 Mar 2024, 3:03pm
rjb wrote: ↑24 Mar 2024, 1:33pm
Shirley the fairest tax regime would be to have one rate applied to all income. Having higher rates just increases salaries to try and make up the shortfall, so perpetuating escalating salaries. Scrapping personnel allowances would simplify the tax regime so everyone would know how much they owe.
It would mean a few years of pain until the new system stabilised. Less room for tax avoidance. Better transparency.
Any takers.
I'll get my lid on in anticipation of the incoming flack.
Someone on minimum wage and working 40 hours a week currently pays around £1800 pa in income tax. Under your system of abolishing the personal allowance, they'd pay about £4,300.
Any other great ideas to reduce the income of the lowest paid?
I didnt say it was going to happen overnight but at least Lizz Trust started the ball rolling. My idea is sensible and fair. Look at the overall picture. We are discussing taxation not income here. Will take some progressive planning, but it should reduce those eye watering salaries which take oppressive amounts of taxation into account when remuneration is calculated making more available for those further down the scale.
How can it be fair for someone to be taxed at 20% whilst others are taxed at 40%. Equality for everyone.
Taxation and income are closely linked. The system you proposed will reduce the income of anyone earning less than about £100,000 a year, with the lowest paid affected the most. You talk about progessive planning, I suggest you google progressive taxation.
The ball Liz Truss started rolling cost the UK about £30 billion before her and it were stopped.
If you wnat equality for everone perhaps you should be advocating equal incomes for all.