Leading economists and company directors have released a report that is 400 pages long in which they are urging George Osborne to do something about the income tax system which they call punitive and extraordinarily complex.
Members working on the report call for a system which has a flat rate single income tax set at 30pc. Oddly, there were 30 specialists on the commission which also called for cuts on the fuel duty as well as eliminating the National Insurance.
This plan for a single income tax would enable UK workers to keep much more of their earnings, which could total in the thousands of pounds. Further, the commission states that this plan would work towards making the UK a hub for global trade.
Even so, aside from the political agenda, workers would benefit by this plan which in turn should kick start the stagnant economy, according to the Commission. As well, this would help to eliminate much of the concern over the growing crisis in the eurozone.
The report was released by the 2020 Tax Commission along with input from the Taxpayers’ Alliance and the Institute of Directors. In all, information was gathered over an 18 month period of time with input from both the public and private sectors.
According to the chairman of the Commission, Allister Heath it is time to choose between the status quo or making real change which could radically transform the economy in the UK. He believes that this single tax would offer ‘renewed prosperity’ for all workers and residents of the UK.
The 30pc single tax would, in the estimation of the Commission, show that a household with two wage earners bringing in £28,000 would have a tax savings of approximately £3,400 annually. Furthermore, the Commission believes this would provide an 8.4pc increase in the GDP within 15 years.
Along with other cuts and extraordinary changes to the taxation system currently in place, the Commission states that there needs to be radical changes in order to ease pressures on struggling families and businesses in the UK.