[user104658]

I strongly believe that the best thing for the economy is for more disposable income to be in the hands of people who will actually spend it; i.e. working people (and also those in receipt of benefit). So in principle, I'm actually in favour of the highest tax rate being the 40% rate (no 45% or 50% rate), and also, I would raise the thresholds of each band rather than lowering it, including the 0% band (I think 0% under 14k would be reasonable).

I would definitely not support a 20% tax band across the board on all earnings... it would be unworkable. Full time minimum wage is roughly £1200 a month which is ALREADY only just about enough to scrape rent, bills and food.... if you take 20% off of that then min wage take home would be closer to £950 a month.

There HAS to be a basic threshold of subsistence (shelter, fuel, food) that is allowed for before the government starts taking a slice of the pie.

Also remember that the 0% band doesn't only apply to people on low incomes... the first £11.5k of your earnings is tax free no matter HOW much you earn.



Current rates are:

Personal Allowance (0%)
Up to £11,500

Basic rate (20%)
£11,501 to £45,000

Higher rate (40%)
£45,001 to £150,000

Additional rate (45%)
over £150,000


I personally would support:

Personal Allowance (0%)
Up to £14,000

Basic rate (20%)
£14,001 to £55,000

Higher rate (40%)
£55,001 and above

Additional rate
none


Though obviously you couldn't do something that drastic over night, it would be a significant restructuring of tax income.



Oh... also I would never have VAT any higher than 12.5%. 20% is a ridiculous VAT rate.