Thread: council tax to be replaced by local derivatives ?
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Old 16-01-2004, 10:26   #5
SMHarman
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Re: council tax to be replaced by local derivatives ?
It would make the whole thing a lot more transparent, after all most of a councils funding comes from central govt, the council tax is a 1-20% tweak at the edge (and a lot of admin).

Looking at the cost of council tax, which comes from after tax pay. Say you pay £1000 a year and earn £40000. That £1000 is after tax, so rounding back up (roughly) for tax and NI (averaged at 30%) thats 1000/.7 = £1430 or 3.6% of your gross pay. Personally I never realised what a High percentage of my pay was taken in council tax.

So if the council tax was abolished and a further 3.5% was taken from your gross pay then you would be in a 0 sum position. Unless there were multiple earners at the same address, then it gets a bit like the poll tax.

Personally I think this change should be far more reaching. Lets make our income tax more transparant and say have an 8% EU tax (for the element paid away to Brussels), a 25% Central Govt tax and a 10.5% local tax, this totals the 43.5% paid away by a higher rate payer.
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