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Originally Posted by andyl
I'm probably being a bit thick here but I can't get to grips with how income related tax can adversely affect the poor. As I understand under these propsals those that earn more will pay more, those that earn less will pay less. It's a tax which reflects ability to pay.
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5 people share a property, they all earn low wages, something like £12,000 a year.
Their landlord pays the council tax.
The 5 people therefore pay nothing.
Under the local income tax they'll all start paying.
It's fair in that everyone who works pays, it's not helpful in that there's no benifit in living with others under one roof to share the cost, and the majority of house shares involve low income people because sharing the costs out makes it affordable.