Gawain Towler has beaten me to it. To cut a long story, they are thinking about merging income tax and National Insurance into a single tax.
All together now for a bit of special pleading: "But what about pensioners with savings income?"
Answer: it's the interest rate that matters, not the tax rate. Ignoring inflation, is is better to be paid 6% interest and pay 40% tax, or is it better to be paid 0.5% interest and pay 20% tax?
Alternative answer: they can just leave the tax deducted from interest* at a flat 20%, that's administratively the easiest thing in the world.
* Or indeed pensions in payment, to answer Dearieme's question.
Quick update
5 hours ago
5 comments:
As Farage says, as long as we get what we want it matters not if UKIP members are elected to the Commons.
If the Tories carry on like this they may start enticing all those UKIP defectors back.
You should just post a copy of the tax policy paper to this office for tax simplification. Get it implemented through the back door.
Here are some other suggestions for the coalition:
Roll up child tax credit and child benefit into a universal child benefit.
Abolish the Winter Fuel Allowance and use the saving to reduce VAT on energy.
Remove pensioners' extra income tax allowance and redistribute it universally.
Scrap the two tier working tax credit system and replace it with a citizens dividend for anyone earning below £X
Use a portion of the Housing Benefit budget to build housing on government owned land.
But what about pensioners with pensions income?
CD, that would be nice, but the Tories have only picked up on about 3% of the UKIP manifesto so far. Agreed to all your other suggestions, of course. It's not rocket science is it?
SW, the OTS are a bunch of Tory appointees and we can guess what will come of it.
D, I have updated.
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