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:
- Taxes should be cut to 33 per cent of national income
- Marginal tax rates should not exceed 30 per cent, and the personal allowance should rise to £10,000
- Taxes on capital and labour income disguised as business taxes should be abolished and replaced with a tax on distributed income
- Transaction, wealth and inheritance taxes should be abolished
- Other consumption taxes need to stay for now, but transport taxes should be cut
- Local authorities should raise half of their spending power from local taxes
Other highlights from the report include:
- 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.
- 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.
- Stamp Duty and Inheritance Tax would be abolished.
- A Fuel Duty cut of 5p a litre and the abolition of Air Passenger Duty.
- 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).