Sunday, August 21, 2005

The Economy

• Flat taxation. Ideally a single rate across business and personal rates to reduce effort spent on avoidance.
• The lower paid should not be subject to income tax, so the introduction of a single, high personal allowance in the order of £20,000 will be introduced, which can be pooled in the case of married couples with children even if one partner does not work at all and/or for Sole Traders.
• All tax credits and allowances will be scrapped, as all people receiving these will be better off due to the flat tax regime.
• Invest in infrastructure that improves efficiency of the economy. Examples: ports, commuter and freight railways, guided bus-ways, provision of alternative, home-produced fuels.
• Infrastructural investment should aim for fewer projects completed rapidly so the benefits can be felt sooner. As each project completes the priority of outstanding projects can be reviewed and the most important commenced. This allows a more flexible response to the Nation’s needs. An example is the completion or overhauling of railways and tube lines.
• Immediate investigation into reforming VAT, which is a burden upon small businesses. Consider raising threshold significantly (to £-00,000’s p.a.) to enable small businesses to be free from the overheads or make every transaction subject to VAT to remove the disruption of cut-over.
• Thorough review of business regulations and red tape.
• Excessive waste and bureaucracy will be reduced naturally by the withdrawal of the State from many aspects of society.

7 comments:

chris said...

how about getting out of the EU? The treasury says it is a 28% drag on our economy and accounts for 40% of all UK regulation. Both probably understated. This would also allow you to remove VAT entirely as it only exists in order to comply with an EU directive as it is part of the EU's funding mechanism. Maybe replace it with a Local Sales Tax if needed.

Roger Thornhill said...

Chris,

Thanks for your comment. If you can provide references, I would be most interested!

Getting out of the EU or not will be clear when we pursue what we need to do for our economy and the prosperity and opportunity of our fellow citizens. If the EU is happy with it, then fine, if the EU stops it or drains us and refuses to let go then that is their decision and they have decided where they fit in with our future. As a nation we need to provide the best environment for citizens to be allowed to florish, prosper and grow.

I have no argument with the EU unless the EU decides to have an argument with ME.

Devil's Kitchen said...

Roger,

As long as you want to reform VAT, control our trade policy (essential for growth) then the EU has an argument with you.

If you want to reduce regulation on business, or reform our employment laws, then the EU has an argument with you.

If you want to sort out our useless rubbish laws or environmental policy (including addressing the destruction of the North Sea fishing stocks) then the EU has an argument with you.

I could go on...

DK

Roger Thornhill said...

DK,

Agreed. I am certain the EU will have many arguments with my position!

The point is that the disengagement should be rational and for positive reasons in the national interest, not an "anti EU" action of spite (leave spite to the EU). If the EU wants to throw a hissy fit, that is its business. The UK should at all times wish to continue to agree where it agrees and to work together where it can work together, idealy as part of the EFTA alongside Switzerland and Norway.

Henry North London said...

I like this personal allowance at 20000 whats the tax band after that though?

Roger Thornhill said...

The aim would be 22%, but certainly below 30%. The outline is taken basically from the Adam Smith Institutes's plan and does expect significant savings in expenditure and presumes an increase in revenue collected due to the nature of flat tax structure.

dirty european socialist said...

Increase taxes to found redistrubution to stop poverty.