THERE SHOULD BE A SINGLE INCOME TAX to create “conditions for stronger economic growth and more jobs”, according to the Taxpayers’ Alliance’s 2020 Tax Commission.
In a report published today, the Commission recommends six steps through which it says such a tax can be achieved.
– Taxes should be cut to 33% of national income;
– Marginal taxes should not exceed 30%, and the personal allowance should rise to £10,000;
– Taxes on capital and labour income disguised as business taxes should be abolished and replaced with a tax on distributed income;
– Transaction, wealth and inheritance taxes should be abolished;
– Other consumption taxes need to stay for now, but transport taxes should be cut; and
– Local authorities should raise half of their spending power through local taxes
These measures, it says, will lead to “treating taxpayers more fairly” with taxes themselves becoming “lower, simpler and more transparent”.
Allister Heath, chairman of the commission and editor of City AM, said in his foreword that the proposals while “far-reaching” are also “practical” and added “they are within the realms of what a competent, ambitious and principled government could achieve over the next decade”.
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Let us hope that valuable asset protection vehicles are not made prohibitively burdensome or abolished in the desire to “simplify” IHT