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Godfrey Bloom MEP: How Ukip could cut income tax to a flat rate 25%

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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

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Comments

There are 12 comments at the moment, we would love to hear your opinion too.

  1. I know we know it, but when you read through and digest again the money we waste, it is just obscene.
    All I would add, is be glad Mr Bloom the FCA budget is not paid from the tax payer this would increase the quango element quite a bit, so if you can swing it get rid of these mumpties as well !!

  2. Malcolm Coury 4th June 2013 at 9:20 am

    UKIP is becoming a force to be reckoned with and appears to be the only policitical party with the balls to say it as it is. We need an honest government that isn’t run by a party fearful of losing a few votes because they might upset some misguided member of the electorate.

  3. There are some extraordinary generalisations in that article. Just a couple –

    ‘Solar panels that won’t boil a kettle’ – Everyone I know with solar panels seems to be able to boil their kettle ok – plus run their entire central heating system for a fraction of the cost of those of us still persisting with gas and electricity.

    Ronald Reagan ran up the biggest deficit in US history with his wonderful ‘low flat tax with high threshold’ policies. Clinton rebalanced the budget, only for George Bush to send the deficit spiraling again with similar policies to Reagan. As for Harding and Coolidge, the wonderful economic land of milk and honey in the 20’s ended with the biggest financial crash in history – until the recent one.

    This is simplistic voodoo economics. The maths don’t add up either – go back and check the ‘monthly figures that allegedly add up to £36bn’…

  4. Martin Bamford 4th June 2013 at 11:50 am

    @Malcolm Coury

    Surely you mean a farce to be reckoned with? I’ve seen more common sense recently on public spending from the Labour party, and that’s really saying something!

  5. Instinctively I agree with Godfrey. Sure there are holes which can be picked in the argument, as in any comprehensive argument but the principle is sound.
    Perhaps ‘Smithy’ would write a full reply with his alternatives – oh, and under his full name, so we can have a sensible debate.

  6. I’m hopping the border right now to live like a film star in South Yorkshire lol.

  7. What absolute ill conceived ideas. I’m concerned fellow colleagues in my profession below this man’s principles are anything but a joke.

    Firstly, must haves (Armed Services, Infrastructure and Police)??? What about education and th neglected NHS? Why are these not essential “must haves” for UKIP? These have already been cut to breaking point. The NHS has been the sacrificial cow for past Governments not a sacred cow and is now at deaths door when it needs it support, not putting out of its misery. The education system has also been cut too severly – quoting headline figures helps no-one apart from Daily Mail readers and the gullible.

    It’s common sense we need growth, but you don’t state where this should come from. Certainly not from your proposals. Anyone can state the obvious.

    You state you’ll cut back on Quangos, but surely to look into all cuts you’re proposing there will need to be more to dig out the savings. They can’t simply materialise.

    And who exactly should a 25% tax rate appeal to? Certainly not the lower earners. Higher rate tax payers with careful planning can maximise use of products available to reduce tax relief and allowances.Similar ideas in the 20s led to economic disaster and I’d hardly be quoting Reagan as the model of effective policy and politics.

    Increasing allowances for pensioners is clearly another policy for winning those precious votes. We all know more elderly vote than younger people, so if you’re coming up with drivel to win their votes, please try and conceal it a little better.

  8. A lot of interesting points.

    Unfortunately the devil is in the detail. How exactly is this £36bn going to cut? I assume UKIP aren’t just going to sack the head of social services in Rotherham or the unfortunate 9 people from Barnsley County Council.

    While making a lot of interesting points that need to be debated, Bloom answers none of the questions the article raises.

  9. I appreciate that this is one man and not necessarily representative of the the whole party but this is sixth form stuff at best.

    No NI? Fine. How does one qualify for the Basic State Pension?

    Ring fence Armed forces, Police and Infrastructure? Why? Replacing one set of Sacred cows with another is not an answer.

    A lot of overpaid public sector workers? No doubt. Even if you sacked every public sector employee in the land who earned more than £80,000 I doubt it would even come close to even 25% of the deficit. Then what?

    I’m no Big government statist but this does the cause of fiscal restraint and good governance no good at all.

  10. There are alwyas generalisations about this stuff – govenrment is all about generalisations – the bigger picture. He has got a lot of valid points and We have had tory, labour and now coalition govenrments who have managed to totally screw the country up 100%. Increased costs all arcoss the board – in every walk of life. UKIP could not do a worse job than has already been done. Plus they stand for a get out of europe card whcih is enough in my book to vote them in. They will be a partyto be reckoned with come the next election and I hope that is the case. We will be no better of und any of the 3 main stream parties. Time for a change. If it doesnt work then we will be no worse off then than now. Vote UKIP

  11. What they don’t tell you is they would privatise the NHS to fund these tax cuts

  12. An interesting piece, whilst I don’t agree with every point here you do have to seriously question why middle management and senior management in both Whitehall/Local Councils and the BBC demand well in excess of six figure salaries. It should rightly be questioned as to whether some reduction in these could be used in frontline services certainly if overpaid managers are making the call on cut backs

    I think what UKIP are doing if anything is bringing a sensible argument to the table, you don’t have to dismantle the NHS/BBC etc but certainly reform it to enable frontline services to be of the highest possible quality. Would a senior manager on £400,000 really leave the BBC if they were on say £200,000? How is this benchmarked?

    It’s also pretty disgraceful that the UK has ring fenced foreign aid in my own personal view when (without wishing to come across as a Daily Mail reader) there are countries contributing far less such as France, China, India and the USA as a proportion of GDP

    Also it’s quite right that there is suggested reform over Common Agricultural Policy and the current EU mandate which by far we do pay more for than we get in return from UKIP

    I am all for altruism particularly if we can reinvigorate the economy through strong fiscal policy as they are suggesting so they do raise some good points here to question the status quo if anything. If the conservatives loose some votes perhaps they will rethink their priorities – I’m not in favour of being isolationist but I certainly think they bring some good points to bear.

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