We currently have a massive debt, which has got to be repaid. Many, many years ago when I first started in business I learnt that if you earn £100 and spend £95, you’ll always have money, but if you spend £105, you’ll go broke. So the first thing we’ve got to do for the Great British economy is to stop it going broke.
To do that, we’ve got to have a debt repayment plan, which is going to be painful. Nobody minds paying a fair share of what we do, but with all of these stealth taxes and the indirect taxes and the hidden taxes about 80p of everything you earn goes into some kind of tax, and it’s not what the Great British public want.
So, most of our clients that we speak to have said why can’t they just put 3p on income tax and just get rid of all the rest. So, to have a nice straightforward simple system, that is what I would do. I’d put 3p on income tax, I’d get rid of VAT, I’d half the tax on petrol, and I’d half the tax on indirect taxes that everybody hates.
Now, it terms of inheritance tax, I would have the threshold linked directly with the housing market index. If a house went up 10 per cent, the inheritance tax threshold would go up by 10 per cent. That would just keep it in line and nobody would mind paying their fair slice as we go through the system.
Introducing a higher rate tax discourages people from working so I would not go higher than the 40 per cent level of taxation. But, to get people moving there needs to be an incentive for people to strive to earn more, therefore I would taper in the increase to the higher rate of income tax between around £37,000 and £50,000.
Because we are in a baby boom era, the number of people contributing to the system is getting smaller and smaller and smaller, so, we can’t support an old age system that brings in the basic state pension at 65. They already have plans to move that age up and really that age needs to go to 75, before the state old age pension kicks in. I know that won’t be popular to anybody particularly, but we just don’t have the resources.
In terms of the NHS, I would bring in a similar system to what America has. The NHS is just a lumbering giant full of waste and we just can’t afford to pay for it. It needs a radical overhaul.
Stamp duty is one of the most hated taxes that any government has introduced. There has to be some kind of stamp duty but I would move the level for all buyers to £250k, rather than just first time buyers, because that doesn’t allow families to move from a starter home to a 3 bedroom semi (or whatever) without paying a huge amount of stamp duty. They are just trying to nail the normal working person in the early part of their lives when they can’t afford it.
Ample Financial Services director Colin Parkin
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