Get rid of tax credits
And raise tax allowances. Much simpler, and the most benefit goes to the most needy. In fact, the only thing the gubmint needs to do when it comes to budget day is work out how much less tax it needs and raise tax allowances accordingly. A £1000 tax free is worth a lot more to someone on £15,000 than it is to someone on £60,000.
It's also incredibly more efficient than a 12-page form, separate IT systems, separate rules and procedures. The savings in red tape costs can be passed on as well - by raising tax allowances even more.
And get rid of National Insurance altogether. Add a bit to basic rate income tax to cover the lost revenue, and raise tax allowances a bit to show the savings made in less administration. Currently, National Insurance creates a poverty trap: under a certain amount you pay nothing; over that amount you pay on everything you earn, which can leave you with less take home pay than if you were paid a quid less. National Insurance also represents an easy way to raise income taxation for gubmints by not so stealthy means. Get rid of it.
Imagine a scenario where the basic tax allowance reached £15,000. Anyone on a really low income would see 100% of their pay, and anyone of a really low income would need every penny they had earned. It makes sense, right?
It's also incredibly more efficient than a 12-page form, separate IT systems, separate rules and procedures. The savings in red tape costs can be passed on as well - by raising tax allowances even more.
And get rid of National Insurance altogether. Add a bit to basic rate income tax to cover the lost revenue, and raise tax allowances a bit to show the savings made in less administration. Currently, National Insurance creates a poverty trap: under a certain amount you pay nothing; over that amount you pay on everything you earn, which can leave you with less take home pay than if you were paid a quid less. National Insurance also represents an easy way to raise income taxation for gubmints by not so stealthy means. Get rid of it.
Imagine a scenario where the basic tax allowance reached £15,000. Anyone on a really low income would see 100% of their pay, and anyone of a really low income would need every penny they had earned. It makes sense, right?
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