Middle income earners would lose out from a flat tax system, a report has
As part of an in-depth analysis of a flat taxation system produced for ACCA,
Richard Murphy, the tax researcher and campaigner, has suggested that a flat tax
system in the UK employing a £10,000 personal allowance and a 20% tax rate would
benefit the rich and the poor and hit middle earners, who would pay a higher
effective rate than they do now with available allowances and tax rates.
Murphy told Accountancy Age people earning between £22,000 and
£74,000, typically the ‘Mondeo man’ swing voters targeted by political parties
at election times, would find themselves paying more.
The findings back up other research suggesting a similar outcome.
The report also disputes many of what are considered the prime attractions of
a flat tax. ‘There’s absolutely no evidence to prove [points made in favour].
There’s no evidence of increasing tax takes and no evidence of increasing
Read the report here.
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