A report by the 2020 Tax Commission has called for Britain’s “extraordinary complex and punitive” tax system to be replaced with a “simple” thirty percent flat rate of income tax.
The 2020 Tax Commission believe that the “single income tax” would allow workers to keep thousands of pounds more of their earnings to spend in the High Street, helping to make the UK a global “hub” for trade.
Within the 400-page report, the 2020 Tax Commission suggest that the change to a flat-rate income tax of thirty percent, would result in roughly a £3,400 tax cut for a two-earner household with an income of around £28,000; and could lead to an 8.4 percent increase in the UK's gross domestic product after fifteen years.
Allister Heath, the chairman of the commission, said that a “single, much more reasonable” income tax could transform the UK’s economic prospects.
He added: “It is time for Britain to make a vital choice between tweaking the status quo and letting our economy continue to be crippled by complex and punitive taxes, and drastically changing course with a radical but realistic plan for a tax system fit for the 21st century.”
The report, which was released amid concern of the country’s stalling economy and vulnerability to the growing crisis in the Eurozone, has also recommended the Chancellor cuts fuel duty and looks at the abolition of National Insurance and Stamp Duty.
For more information, please visit www.milsted-langdon.co.uk
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