Thursday, February 21, 2019

New Policies for The Independent Group...

1. Make Freedom of Movement acceptable to Leavers by having a very tough residence test, 5-10 years before any access to benefits, social housing, welfare etc and possibly the personal tax allowance. Exceptions allowed for frontline personnel such as nurses. The residence test period would be non-continuous so that Brits born here who have gone abroad and come back would not necessarily be affected. Applied equally to Brits and EU citizens then EU permission would not be needed. Probably a step too far but could be made retrospective.
 

2. Burden of tax shifted from individuals to companies, council tax to be phased out and replaced by a turnover tax on business – hugely popular with the electorate. This turnover tax expanded to replace business rates and employer NI, rebalancing taxes paid by high street and online companies. Turnover tax much harder to fiddle than profit numbers.
 

3. Simplified tax system with employee NI integrated into income tax rates (pensions and benefits then based on residence rather than NI contributions), new tax rates starting at 10 percent through to 40 percent, angled at improving net income of those earning less than 25000, whilst tax reliefs for pensions and charity would be restricted, tax rollovers abolished. Capital Gains and inheritted money treated as income, not so popular but does emphasize new fairness in the tax system. 

4. Energy tariffs to be realigned to encourage low energy usage - standing charges will be abolished and the first £20/month will be set by the government at half the current rate. Each company then allowed to set a single rate for higher usage with the same discount for online and direct debit payments, making it simple to compare offers. Once this has settled down the top rate to be limited by a multiple of the actual energy cost, over time that multiple would decline to force efficiency into the system. 

5. Solar panel and heat pumps to be removed from the tax and tariff system to lower prices. New installations to have smart meters that run backwards so the owner is always credited with excess energy produced (which will be used by industry during the day) so that they will have a radical drop in energy costs. No other incentives then needed.

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