Flat rate tax

I am being seduced gradually by the attractions of a flat race income tax. Normally this is rejected on the grounds that it does not take account of ability to pay. However it does have a lot going for it - it provides good incentives and is simpler.

That said, I would include four strict provisos -

First the starting point must be quite high.
Second it must distinguish between earned and unearned income with a much higher rate for the latter
Third there would have to be stricter rules on tax evasion.
Fourth there would have to be stricter rules on benefit 'cheats'.

It is becoming apparent to me that Britain's growing aversion to tax has two major causes (I think this also applies to the USA). One is that people believe too much of their tax goes on benefit scroungers. The other reason is that too many rich people get away with paying little or no tax. We need to deal with them before refomr can be attempted.





http://www.hoddereducation.co.uk/Colleges/Government---Politics.aspx?mRef=CNM01.