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)