The Single Income Tax

The Single Income Tax presents a radical but realistic reform of our tax system. It calls for the abolition of eight taxes and the creation of just one - a Single Income Tax.

The report recommends that:

1. Taxes should be cut to 33 per cent of national income
   
   
2. Marginal tax rates should not exceed 30 per cent, and the personal allowance should rise to £10,000
   
   
3. Taxes on capital and labour income disguised as business taxes should be abolished and replaced with a tax on distributed income
   
   
4. Transaction, wealth and inheritance taxes should be abolished
   
   
5. Other consumption taxes need to stay for now, but transport taxes should be cut
   
   
6. Local authorities should raise half of their spending power from local taxes

Other highlights from the report include:

1. Income Tax and Employees’ and Employers’ National Insurance would be merged into a single tax on labour income, with rates levelled down so that certain groups don’t face higher bills.
   
   
2. Corporation Tax and Capital Gains Tax should be replaced with a single tax on capital income – dividends, interest and rent – at a rate of 30 per cent.
   
   
3. Stamp Duty and Inheritance Tax would be abolished.
   
   
4. A Fuel Duty cut of 5p a litre and the abolition of Air Passenger Duty.
   
   
5. To ensure fair treatment of families with children or a single earner, the proposals would allow part of the Personal Allowance to be transferred within families (a Family Transferable Allowance).

Read the executive summary

Read the full report: