Someone has asked me about the Libertarian Parties plans to scrap Income Tax and this is my response.
They don’t appear to give any clear indication of how they will make up the shortfall in revenue though.
Good question, I would prefer this to be made explicit too. Howevr they plan to reduce public expenditure so there is no need to raise the same amount of money by other taxes. The size of the state will be cut.
However, this is how I would do it.
http://caligulaspalace.wordpress.com/2008/01/05/funding-educ…
details how to save £24bn by introducing education vouchers.
Scrapping all non NHS quangos £67bn.
Not giving money to the EU £15bn
Scrapping tax credits £14bn (With no Income Tax, tax credits would be unnecessary).
Foreign Aid £5bn
Welfare for industry £15bn
Transport £10bn
Totals £150bn
Income tax for 2007/8 £150bn.
Please note. These are my figures and plans not those of the UK Libertarian Party but it just goes to show how much fat there is to be cut off.
Also note no mention of cutting pensions, dole money, NHS spending etc.
IMHO, taxation at source (i.e. Income Tax) is still the fairest – albeit far from perfect – way for the Government to raise necessary funds.
In terms of economic impact I would argue that scrapping Corporation Tax is better, but companies don’t have the vote.
Not sure what any of this has to do with my personal situation of trying to live below my means though…
On your salary of £31,000 a year you pay £5,400 a year in Income Tax.
Do you really not understand how a saving of £103.84 per week is helpful to LBYM?
How much sooner could you pay off your debts with an additional £103 a week in your paypacket?
