Godfrey Bloom MEP: How Ukip could cut income tax to a flat rate 25%
The country needs a radical reappraisal of how the economy is run and I believe Ukip could save billions and pay for exciting tax cuts.
The plan includes a flat rate income tax of 25 per cent, an end to all employer and employee national insurance contributions and a personal allowance of £13,000 that could be transferred between spouses.
For pensioners the personal allowance would be £15,000 and transferable between spouses.
How then would we do it?
Firstly, what are the must haves? Armed services, police and infrastructure. The things that make the nation state. So dire are our finances as a country it may already be too late.
Moody’s got it wrong in my view on debt to GDP peaking at circa 85 per cent in 2016. Public sector pensions and private funding initiatives have swollen our debt ratios of 200 per cent, we are in Greek territory already.
Our only way out is growth. Growth with expert housekeeping. None of which we have yet had.
Let us start a ‘little list’ in the estimable words of WS Gilbert. In no particular order, away with £1bn per month on overseas aid, £1bn per month on EU membership, £1bn a month on fake charities, £4bn per month on quangos - yes £4bn.
The Tax Payer’s Alliance has flagged up £1.5bn per month in savings with mergers and abolitions. Some of the most expensive quangos are no more than EU regulatory enforcement agencies.
Without the necessity for these I believe £3bn per month could be saved. Notice I have already saved £36bn per year. But let me go further still.
Ring fencing the sacred cow of the NHS is absurd, an organisation of 1.3 million people less than half of whom have any sort of medical qualification.
A £200bn organisation - can we really save no money? Of course we can.
Divide the number of school children into the education budget - £10,000 per child, can we really make no savings? Of course we can.
Does the head of the County Council really need a salary of £200,000? Does the head of an NHS Trust need £250,000?
Does the head of social services in Rotherham need £120,000 per annum? Does Barnsley Council need over nine people on £90,000?
Has anyone any idea what these salaries mean in South Yorkshire? You could live like a film star.
Does the head of BBC TV planning need £400,000 per annum to run 21 repeats out of 23 programmes on BBC 2 on Christmas Eve? Even her Majesty was cheesed off!
Yet with all this public spending there is still a shortage of midwives, closure of A&E wings in hospitals and roads are a pot-holed nightmare worthy of the third world.
Have you noticed I have not suggested sacking a single soldier, policeman, doctor, nurse, teacher, road sweeper or dustman. The people who actually do something for a community.
We have a crazed, insane energy policy with both direct and indirect subsidies. Wood chips shipped in from Canada to burn inefficiently at Drax Power Station. Absurd windmills which are more than useless.
Solar panels which won’t boil a kettle backed up by a whole Government department of self-interested ‘renewable’ energy shareholders. The MOD procurement process is run by monkeys.
I believe Ukip could save £80bn per year on spending to fund significant exciting tax cuts.
Moreover when people ask me if the tax cuts have been ‘funded’, it always flags us a potential economic illiterate.
It is the school of thought who believe if 15 per cent VAT raises £10bn then a 25 per cent increase will raise a further £2.5bn. But when income tax and national insurance contributions reach 50 per cent of income people run for their tax planner.
Confiscatory tax raises no money as President Francois Hollande is finding out in France. People won’t pay. They disappear or set up offshore trusts and companies.
It is my belief low flat tax with high thresholds will either flat line or increase revenue. It worked for the Warren Harding and Calvin Coolidge administrations in the 1920s, Ronald Reagan in the 1980s.
Astonishingly when introduced recently by the Czech Republic it raised more in the first six months than the entire previous year.
The internationally wealthy would see England as a place to stay, to set up shop. Not squeeze the so-called rich on the basis of envy not economic common sense.
Notice I have not yet even mentioned social and corporate welfare. Several billion pounds per month there too I fancy for a political party with the balls to front it.
To those who criticise Ukip, always anonymous for some reason, for “back of an envelope numbers” - let me argue they work better on the back of an envelope than reams of Government statistics which never add up.
Godfrey Bloom is a retired IFA and Ukip MEP for Yorskshire and North Lincolnshire