The TPA's autumn statement wish list

By: Rory Meakin, research fellow

What should chancellor, Jeremy Hunt, do on tax at today's autumn statement? The TPA's Single Income Tax outlines our ideal taxation system. But here is how he could make a start:

1. Acknowledge how damaging the tax burden has become and how it's choking off growth, alongside things like planning, crime and infrastructure
   
   
2. Announce a long-term plan to get the tax burden back down to below 30 per cent of GDP and both current receipts and total managed expenditure (TME) down to 33 per cent of GDP
   
   
3. Set out a programme of measures designed with restoring growth, maximising the growth bang for foregone receipt buck
   
   
4. Make full expensing for corporation tax permanent, as news reports have suggested he will, to reduce the tax penalty on long-term investment
   
   
5. Set out a plan to reduce its rate. Corporation tax is devastating for productivity and growth. As much reduction as possible
   
   
6. Exclude the value of structures and equipment from business rates so business isn't punished via its BR bill for investment. The quickest way to do this might be to extend improvement relief (perhaps to 10 years, regardless of who does it). More info here.
   
   
7. Raise the SDLT threshold to £1 million. That would remove the tax penalty for most 'empty nesters' considering downsizing their homes and free up some property in jobs hotspots
   
   
8. Abolish stamp taxes on shares. They raise the cost of capital to business and harm the City
   
   
9. Announce a plan to reform driving taxes by shifting away from vehicle ownership and petrol use to driving at congested times and places. Driving on free-flowing roads should be cheaper. Adding to congestion should be dearer. Replace existing driving taxes with road pricing
   
   
10. Freeze sin taxes and devolve the right to keep receipts to local authorities (with a reduction in grants). This would help focus local voters' (and their councillors') minds when it comes to licensing and planning permission decisions
    
    
11. Raise the income tax personal allowance to £14,000
    
    
12. Index all income tax (and national insurance) thresholds to earnings
    
    
13. Abolish the 60% rate of income tax (aka the £100,000 personal allowance limit)
    
    
14. Abolish the 45p rate
    
    
15. Reduce the student loans repayment threshold and increase the rate to stop it acting like a tax and restore its debt character
    
    
16. Abolish child benefit and increase the child element of universal credit, eliminating the high income child benefit charge with it