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Old 04-08-2007, 07:57 PM   #19
DanaC
We have to go back, Kate!
 
Join Date: Apr 2004
Location: Yorkshire
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Yey that 'next !' is much nicer *smiles*

Quote:
Not being able to understand the tax codes is one huge reason to simplify the bloody things. Other than eliminating taxes completely, a single rate for everybody is as simple a plan as I've been exposed to......but I'm open to alternatives, which is why I've introduced the topic.
Personally I have never been in favour of flat rate taxing. The point has alreadybeen raised i think, that taking x% from someone who's income is less than 20k will impact that person/household far more than taking the same x% off someone who earns 600k. Out of that 20k I bet every cent is needed just to keep the wolf from the door, and every cent taken in tax was a vital one for that household. That isn't the case with the household of 600k. When you are counting pennies to ensure everyone is fed, you notice that x% going out of your income; when you don't have to think before booking a table at a restaurant or a flight to the bahamas, I doubt you feel quite the same sting from that x%.

In the UK we adopted a system of low rate tax for the lowest earners, 10p in th £1. Above the threshold you get the usual rates. These rates slide according to income level. When you go from one threshold to the next, the rate at which everything you earn above that threshold is taxed, becomes that bit higher, but what you earn below that threshold stays at the lower tax rate. Of course that's just Income Tax. the Council Tax system for gathering local government funds, is much less fair generally, as it is based on the which property band your house falls into.

Last edited by DanaC; 04-08-2007 at 08:03 PM.
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