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Old 20-03-2004, 23:38   #10
MovedGoalPosts
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Re: lib dems: we will scrap council tax

Hmm, so nobody saw the BC2 Programme "If" last Wednesday, which mooted exactly the same idea, but the scenario was in 2014 a Local Income Tax had replaced Council Tax.

The problem there was the redistribution of the burden from one sector of the population onto another sector of the population.

Council Tax supposedly relates to the value of the property allbeit at 1991 values. Thus the larger the home in theory the more you could pay in tax. Great until you are a pensioner, or whatever that has ended up in a large house, through historically being there while you had a good income and standard of income, but once you retired, or whatever, that income went. However those stuck on a really low income might be able to get some form of income support or other concession, and of course if he persoon lives by themselves they do get 25% Council Tax deduction.

Income tax will place the majority of the burden on the semi professionals, managers and similar supposedly "high income" earners (although at current levels high income is not in fact that high - it's a comfortable level but not that comfortable). These are already heavily and possibly disproportionatley burdened by taxation, especially as such people will rarely, if ever, be entitled to any form of income suppport or other concessions. Meanwhile many of these "high income" earners do not in fact live in the larger houses for areas, as they could not afford to do so. Thus the tax burden could jump massively for some.

The Liberal democrats answer is not a good one IMO. They have already said they will raise general income tax levels to pay for their plans. Now they will further penalise a large sector of the population by doubling up with a local income tax.

I don't know what the answer to local council revenue needs is, but I don't think a local income tax is it.

I am aware that labour and liberal democrats are all for "redistribution of wealth", but at the moment I see very little evidence that the ever spiraling amounts we are paying is making a real difference to the front line. Meanwhile individual earnings are getting penalised, pension plans are getting taxed, and general standards of living for the private sector emloyed are slipping. At the same time the public sector employee enjoys protected pensions, often good holiday rights, and often a reasonable salary. It is indeed this pension timebomb inequality that is causing the biggest tax problems. If a political party was to have the balls to deal with that, fiddling with local and national tax would be a lot easier to address.
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