(PRWEB) September 26, 2005
The Progressive Centre-Right Conservative Party, the ProgCons, today proposed a solution to the double problem of Britain's complex tax system and local council funding by introducing an innovative single flat income tax rate system that is composed of a national and local component.
The National Local Flat Tax Rate system (NLFTR) offers a simple and cost effective tax solution that both simplifies that current national tax system and finally solves the long outstanding problem of how local councils could become 100 percent self-funded.
Leveraging the simplicity and cost effectiveness of a flat income tax system, the ProgCons propose scrapping the much-hated council tax system and instead allowing local councils to set a local tax rate which would then be added to the national rate to create a single flat tax rate. With a single tax rate, with local variation, but collected centrally, the NLFTR system would save billions of pounds of administrative costs annually as well as providing all of the additional benefits of a flat tax system.
ÂInstead of local councils having to raise council tax and depend on the national government to provide the majority balance of funding, local councils would under the NLFTR become 100 percent responsible for their own funding.Â ProgCon founder Chad Noble said. ÂNLFTR will provide the clearest method of comparing the efficiency of different local councils and avoid the cross-border problems experienced by alternative local funding and collection proposals like local sales taxes.
Being collected as part of the central tax collection system, then being passed down directly to the local councils, the NLFTR will really solve the issue of both making local councils self-funded and transparently responsible for their expenditure. It is hard to underestimate the importance this policy will make on both national and local government accountability, as every tax payer will know exactly how much tax they are paying to the Treasury and their local council. The enormous administrative saving alone will facilitate greater local and national investment in addition to lower tax bills across the board.Â
On a national level, the introduction of a flat income tax system would mean an instant savings for the poorest and lowest paid workers, with an initial increase for higher earners more than equally offset by the scrapping of additional taxes like stamp duty, tax on savings, inheritance tax and others.
ÂThe NLFTR solution is an incredibly simple and fair solution.Â Noble continued. ÂAs we know, both national flat tax and local tax solutions have been proposed by different political parties separately but the real strength lies in combining the two policies to save more administrative and collection costs, creating an efficient and fair system for a modern, 21st century Britain.
ÂWith the fair NLFTR system, we can offer the real possibility of lowering taxes, scrapping the council tax and bringing more poor and low-paid people completely out of the tax system. The system offers an instant benefit to the poor, whilst also ensuring the middle and higher earners will not just claw back the initial higher costs from the savings on other taxes, but will actually result in net lower tax bills. NLFTR can offer the real prospect of lower tax bills, increased government expenditure and greater government accountability both on a national and local level.Â
An additional benefit of the ProgCon's proposed NLFTR system is that by maintaining the tax take on inception, it avoids any shortfall and benefits from increased investment potential offered in a lower tax environment as an additional benefit rather than a dependency.
ÂNLFTR is simple.Â Noble said. ÂOn day one, the poor will pay less and everyone else will pay a little more to ensure that government funding levels are maintained. Within two year, every tax payer should be better off with lower overall tax bills for then, or the year after, but every year afterwards. NLFTR really answers many of the issues that have become lost in party politics and government control. For the ProgCon's, we believe in solutions that are transparent and fair. NLFTR is the fairest system of funding at both a national and local level, and is an innovative approach.
NLFTR is simply one tax free allowance, one rate and 100 percent transparent accountability and funding for local and national governments. This is the future for Britain's tax system, and the ProgCon's view the other parties solutions as a poor attempt to disguise the amount of tax that the government takes from us whilst actually increasing that tax deduction with complex and labyrinthine systems. NLFTR is simple, fair, transparent and we call for its introduction in the UK at the earliest opportunity.Â