From the BBC:
Conservative donor and deputy party chairman Lord Ashcroft has admitted he is "non-domiciled" in the UK for tax... A "non-dom" is someone who is resident in the UK but not domiciled in the UK for tax purposes - although they will pay some UK tax they will not be fully taxed in the UK on their interests overseas.
What are people complaining about here? That he doesn't pay enough or that domiciles pay too much? How about we just tax everybody the same?
As ever, MW's patented flat-tax system rides to the rescue.
(1) All UK income and profits subject to a single rate, flat tax, whether individual or corporate (there'd be no tax on dividends because the company will already have paid it on shareholders' behalf). All income arising overseas in non-tax haven countries to be exempt from UK tax. UK income that is diverted to tax-havens to be subject to withholding tax (we already have the system in place, there's nothing new or exciting about this). And if you want to really nail this down, you could tax income accruing to a UK resident in a tax-haven country as well (spiteful but perhaps necessary - and we already have this system in place as well).
(2) Things like Council Tax, Business Rates, Stamp Duty, Inheritance Tax, TV licence fee, Insurance Premium Tax, Capital Gains Tax and the £30,000 non-dom levy rolled into a flat, single rate tax on UK land and buildings (or preferably just the 'land' bit) like Domestic Rates in Northern Ireland. To kick off, maybe a higher rate on commercial land and buildings, because Business Rates are much higher than Council Tax for an otherwise similar property, but then the rate on residential property would be hiked at the same time as getting rid of VAT and Employer's NIC - thereafter, we just reduce the flat rate of income tax.
Remember that non-domiciles get particularly favourable treatment with Inheritance Tax and Capital Gains Tax; but only they have to pay the £30,000 non-dom levy (OK, they can choose not to, but let's not get bogged down). The other taxes I mention are more akin to Poll Taxes and so completely defeat the object of a Citizen's Income-style welfare system. This way, you pay the same, wherever you (or your parents, or grandparents...) were born and whatever cunning offshore companies and trusts you have set up.
What's not to like?
Here we go
1 hour ago
4 comments:
Yes yes, all well and good, and dare I say it, sane. But what I can never understand is why all the non-lefties when elected to power don't just get on with it?
Well, I do really. I mean, by way of an example, do you think Osborn has any idea as to how to read a balance sheet or has a decent grasp of the economics of freedom? No, neither do I.
The point of course being that once this is done and in, how the Hell would any lefty ever be able to scrap it? Given such an opportunity you'd think that they'd just get on with it. New Labour intends to jerrymander the electoral system, so why not beat them to it and gerrymander for everyone (except lefties of course) the tax and benefit system?
Flat tax - at what rate?
L, you tell ne.
JH, having done the figures, the best place to start seems to be 31% (the same as 20% income tax plus 31% Employee's NIC), and leave corp tax at 28%. I'd prefer 30% across the board, but hey. The flatness is more important than the rate.
What are people complaining about here? That he doesn't pay enough or that domiciles pay too much?
I suspect people are mostly complaining that he is simultaneously a senior figure in a UK political party and claiming tax benefits of not really belonging to the UK.
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