Quote:
Originally Posted by martyh
Not really ,if there was a ceiling of eg 15-17 K before tax was due ,scrap NI's altogether and take 28-30% of income for tax .No loopholes, no schemes,no dodging
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Would 28% to 30% meet the amount we take in now? It also seems unfair that someone on 20k for example would pay a lot more as a portion of their income than someone else. It's effectively a large tax increase on the less well off and a nice tax cut for the rich. I am not sure how it would avoid dodging since income tax now isn't that hard to understand, people still dodge it. They dodge it because they want to keep more of their money and in some cases plain dishonest. They'll try to do it anyway.
These scheme would still work with a flat rate of income tax. It was an exploitation of Gift Aid. We need to make tax simpler to understand but by talking all sorts of these schemes rather than changing the rate of income tax.
I agree about combining NI and income tax however.