Quote:
Originally Posted by Chrysalis
Recently the bottom rate of income tax was announced to be dropped and during the past decade the amount of tax paid by income tax has been steadily dropping, this is not a good thing. Within 2 years low earners income tax will double, NI isnt strictly income based like income tax is.
---------- Post added at 13:35 ---------- Previous post was at 13:33 ----------
Personally I think the poll tax was fairer then what we have now, at least it addressed situations where many adults each with their own income in a house pay more of a fair share and single people paid half of a couple, of course poll tax wasnt perfect and was generally set to high but the principle of it was better I think.
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Unfortunately if only one person was working and any other adults in the house were not entitled to benefits the wage earner had to foot the bill for everyone under the poll tax system! Hardly fair at all!
And as you rightly point out the current NI system in particular penalises the low wage earner especially those who earn just too much to qualify for any more than the basic child tax credit!
There was some talk of a flat rate tax system, which provided there were no loopholes and a decent threshold before you started to pay might be a fairer system all round.
