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Originally Posted by Damien
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.
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I can't read the times' story you linked to as it's behind a pay wall ,but if i understand correctly what has been going on, is that people donate the money, claim tax relief on the donation whilst somehow managing to get most of the original donation back through various methods used by the charity .It may prove to be illegal what they are doing* ,if not then this would be stopped by a single tax rate as the tax relief on donations to charities would disappear .
*A lot of tax schemes of which this is one tread a very fine line between legal and illegal costing HMRC millions of £'s a year to investigate if they are illegal or not and usually end up not getting any extra tax because the clever accountants don't work for peanuts at HMRC they work for themselves inventing these schemes earning fortunes and are rarely wrong