REFORM COUNCIL TAX
Council Tax Not Fit For Purpose
Informative & Original Content
Council tax is in urgent need of reform for the people of our nation and business. it is unfair and regressive.
Council tax was brought in to replace the community charge, known as the poll tax, in 1993.
Council tax is a locally set tax, which is payable for each domestic or residential property.
The exact Council Tax is calculated based on the 1991 property’s value. The values are separated into bands A to H
Example Cheshire East Council.
A £40,000 or less £996.70
B £40,001 to £52,000 £1,162.80
C £52,001 to £68,000 £1,328.93
D £68,001 to £88,000 £1,495.04
E £88,001 to £120,000 £1,827.28
F £120,001 to £160,000 £2,159.50
G £160,001 to £320,000 £2,491.74
H £320,001 and over £2,990.08
- There is a 25% reduction in council tax if there is only one adult in the property you live in. (If you live alone, there is still a 25% reduction.)
- There is a 50% reduction in council tax if there are no adults in the property you live in.
- There is a 100% reduction in council tax if all occupants of the property are full-time students.
We believe the current system of Council Tax is not only regressive but totally inefficient and very unfair. Why should millionaires residing in mansions pay less than people who live in a modest bungalow? We propose a fairer community tax system, where taxpayers who benefit from Council services would contribute, many paying less than they do now. This tax would be collected through PAYE, avoiding the problems associated with local collection, thus avoiding arrears enforcement and administrating the various rebate schemes.
Assuming you agree to reform we would welcome your ideas and contribution in constructing an alternative system.
Community Appreciation
OTHER REASONS FOR CHANGE
Very cumbersome and expensive tax to administrate.
A high rate of default, arrears and prosecutions. For instance:-
A recent Child Poverty survey uncovered, over 100,000 low-income Londoners were sent a court summons because they have fallen behind on payments
Over 71,000 council tax support claimants were charged £8.5 million in court costs
Nearly 13,000 cases were referred to the bailiffs.
Some 11 councils set up hardship funds to mitigate the impact of council tax charges.
ALL THIS COULD BE AVOIDED.
REFORM COUNCIL TAX
SO WHAT CAN BE DONE?
Starting with domestic council tax. There is a good argument to have council tax deducted from earnings, PAYE and alongside income tax.
The tax would be paid by all the people that benefit from council services. Income under £10,000 would be tax-free which would eliminate claims for reduced payment for the low paid and basis pension income.
More people paying less.
To start the process the following income bands have been calculated. (This is work in progress)
First £10000 0%
Next £2000 6%
Next £20000 10%
Next £20000 9%
Next £20000 5%
Remainder 1% Maximum annual payment: £5040 (CAP)
Resulting in the following payments per annum based on income.
£15,000 PA = £420.00
£25,000 PA = £1420.00
£40,000 PA = £2820.00
£60,000 PA = £4320.00
£85,000 PA = £5040.00 (Cap)