Goals & Policy Detail - Taxation

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This is what you say:

We want fairer taxes and a say in how tax is raised and spent.

What's wrong with things as they are?

Taxes are increasing rapidly but the people have no control over them
The tax system seems to favour fat cats on very high earnings and penalise those on low earnings
Taxes are far too complicated and so are tax credits
There is too much red tape tying up business

UKpopdems will make sure that taxes are fairer, simpler and more under the control of the people, so we'll:

Except for very high earners, ensure that overall taxes are not raised by more than inflation in our first term
Before the end of our first term, ask people if they want taxes reduced or increased, and by how much
Introduce a new tax rate on very high earners of between 50%-60%. This can be fully mitigated by increasing the number of British people they employ and/or their average earnings. Or by spending on British goods or UK investments or making approved charitable donations, or investing in environmental measures. Tax revenue raised will go to the poorest in society
Increase front-line revenue resources to combat tax fraud and make tax credits simpler. Ensure every business is registered
Abolish corporation tax and reduce employment taxes. Replace this with an obligation to fund employees' health care and minimum 50% earnings related pensions
Reduce business red tape while still protecting employees and customers.

What will this do for the British People?

In our first term, you will decide on whether taxes increase or decrease and by how much. This will be delivered in our second term
Abolishing corporation tax and reducing red tape will save businesses billions and ensure employees are healthier and looked after in retirement
You will know the maximum overall tax obligation for our first term will not be more than inflation.
The tax share of very high earners will be fairer. But the 50%-60% rate can be reduced by supporting Britain and the British people.
Increased Inland Revenue resources will ensure the numbers evading tax are reduced, and will make it easier for those entitled to allowances and credits to get them.

Companion notes to the policy

Our estimated tax position is neutral for the first term. We'll be spending heavily on front-line public sector jobs and capital projects, but releasing money from excess bureaucracy and waste. Corporation tax and some NI revenues will be lost, but health and future pension costs recovered. In addition, unemployment benefit costs will fall, some tax collection costs will be eliminated, health and education department costs will fall and tax fraud reduced.
When the fiscal position is known towards the end of our first term, the people can decide whether the next government should increase or reduce taxation. And, from a list, what to spend more on or less, and by how much. If the vote is to reduce tax by an appropriate amount, and we are elected for a second term, we will eliminate Council Tax, Inheritance Tax and Capital Gains Tax. A vote to raise taxes will result in increases in Income Tax.
The new 50%-60% tax for the very highest earners will allow the poorest and ordinary Britons to share in this wealth. The starting point will depend on the number of Britons employed by a high earner, and their average earnings. From ten times national average earnings where there are fewer than ten British employees, to one thousand times average earnings for one hundred thousand British employees.
The abolition of Corporation Tax will save most companies millions in avoidance fees and schemes, and raise overall corporate profits. The anticipated result will be a huge influx of profitable companies head-quartering in Britain and employing more British citizens.
Employers' responsibility for health costs and safe 50% pensions will also be mitigated by reductions in employment taxes. Provision will be made through contingency funding where these costs cannot be met.

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