And the snake oil merchants emerge blinking into the light of Brexit November 3, 2016Posted by WorldbyStorm in Uncategorized.
National insurance, business rates, stamp duty, the TV licence fee and excise duties on alcohol and tobacco should be among 20 taxes abolished by the government, a free market thinktank has said.
A report published by the Institute for Economic Affairs has proposed a 15% flat rate of income tax and a VAT shakeup as part of a plan that would significantly reduce the size of the state.
If all the proposals were enacted, the richest 10% of the population would see their incomes rise by more than £13,000 a year on average, but the IEA said those on the lowest incomes would see bigger percentage gains from the changes.
It said cutting tax as a share of national output, from the current level of 37% to between 20% and 25%, would lead to stronger growth and a 26% increase in the gross incomes of those in the poorest decile. Those in the top decile would enjoy a 13% increase.
But hold on, what of the revenues forgone by the state? Not a problem for the IEA for…
Mark Littlewood, the IEA director general, said: “The economic evidence is clear: spending is far too high and the tax system is far too complicated. This new report provides a rigorous approach to discovering and documenting the size of the state and how government spending and regulation affect the wider economy.
So that’s okay then.