Thinking For The Individual

Formerly known as 'Thinking For The People', this site offers some reflections on the state of British society and her people from the perspective of a libertarian Conservative with a passionate belief in the pillars of freedom and responsibility.

Monday, March 28, 2005

The Practicalities of the Flat Tax

An expert on taxation, Richard Teather, has written a report on how the flat tax (see March 25th) could be implemented in the UK. He calls for a flat rate at 22% with a generous tax-free personal allowance of £12,000. This would make low earners exempt from the tax altogether, with those on below-average earnings boosting their incomes by over 12% once taxation was taken away. The average benefit to top earners would work out to be 0.5%. The cost to the Treasury would be £50bn in the first year, but against this would be a saving of £12bn from the abolition of minor reliefs, and the large savings which will be made when many who are currently receiving welfare benefits get back into work.

See the full report here: A Flat Tax For The UK - A Practical Reality

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