The Tax Preparation Blog

Posts Tagged ‘united kingdom’

Question: UKIP proposes flat rate income tax of 33%, what do you think?

UKIP propose to combine income tax and National Insurance in to a single flat rate tax of 33%.

Would you agree if everyone in the UK paid 33% tax on their income? However, they’ll increase the tax free personal allowance to £9,000.

They claim it’ll mean 4.5 million lower paid people will pay no tax at all.

Will this be a good for most people?

http://www.ukip.org/media/pdf/ukipflattaxpolicy.pdf

http://en.wikipedia.org/wiki/United_Kingdom_Independence_Party

Answer: Sounds good on the surface; scratch a little and you’ll find it’s nowhere near as fair as a quick glance suggests. I won”t bother saying why; other people have more than adequately pointed that out.

I would suggest the Norwegian model. No income tax, but absolutely everything you buy has a higher level of vat. This is good for one very, very simple reason.

Everyone contributes. That’s including the rich b@stards who have their bank accounts in Switzerland and criminals who pay nothing anyway. They’ve all got to eat. They’ve all got to buy clothes…. so everyone, even the crooks who spend half their time working out how not to contribute at all, pays to run the country. If affects everyone exactly the same way. Even the unemployed, who still need to eat.

I’ve been told on numerous occasions that ‘that wouldn’t work here.’ What no one has ever satisfactorily explained, however, is this.

Why not?

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