1. Fair Tax Brackets
There are continuous debates about the specifics of tax brackets as well as arguments around when they should be increased or lowered. We will propose a scheme whereby income tax brackets and personal allowances are calculated as multiples or fractions of the median income and float with the economy. As the economy improves, more people on low incomes would be removed from the tax system; if the economy deteriorates taxes increase for all, but with a smaller impact at the bottom of the income scale. Individuals earning less than half of the national median income will not pay income taxes.
- Proposing a scheme where income tax brackets and personal allowances are tied to the median income.
- Ensuring that individuals earning less than half of the national median income do not pay income taxes.
2. Link The Top Rate Of Tax To The Unemployment Rate
The rate of the top income tax band would be linked to the unemployment rate. This would encourage the very wealthy to create jobs.
- Advocating for linking the top income tax band rate to the unemployment rate to encourage job creation.
3. Make Pensions Fairer
At present pensions providers are taking large amounts of the money that individuals save for their retirement in fees and commissions, often with a lack of clarity as to what such fees are for or whether they will be applied at all. Given the importance of saving for retirement, we would aim to disincentivise providers from charging excessive fees and ensure that any costs associated are clearly stated up front. All pension funds should have to state their costs in a clear, unobfuscated way at the point when a pension is set up. We will introduce a right to move pension savings to providers with lower overheads without penalty. We will work to reduce the cost of saving for retirement and try to ensure that everyone in the UK has access to quality pension products. All pension schemes must recognise same sex couples, and provide what pensioners need.
- Aiming to reduce fees and commissions charged by pension providers.
- Promoting transparency in pension costs and the right to move savings to providers with lower overheads.
4. Make Work, Work
Currently, 1 in 3 young people in the UK live in poverty, and 1 in 5 young adults are unemployed, yet even when they do find work at the minimum wage, they are paid far less than older workers. Nobody should be priced out of an adequate standard of living, especially not on the basis of age. We will object to discrimination within the benefits system for anyone not in full time education or retirement.
- Addressing the issue of age-based pay discrimination, especially for young workers.
- Objecting to discrimination within the benefits system for those not in full-time education or retirement.
5. Merge National Insurance And Income Tax
Merging National Insurance and Income tax would simplify the tax system. It would be easier to understand, and may reduce tax avoidance by removing loopholes. This would require unlinking the state pension from NI contributions.
- Advocating for the merger of National Insurance and Income Tax to simplify the tax system.
6. Move Toward A Universal Basic Income
The current economic system faces challenges such as inadequate wages that force many individuals into poverty despite being employed. This results in government subsidies for employers and complex benefits systems. Advocates propose addressing this by ensuring a living wage for all, simplifying the benefits system, and ultimately implementing a Universal Basic Income (UBI) to provide unconditional support to citizens. UBI aims to alleviate poverty, promote flexibility in employment, and streamline welfare administration, potentially offsetting the need for high minimum wages and complex tax codes. However, funding through tax increases and wealth redistribution raises questions about feasibility and incentive structures, necessitating comprehensive research and incremental approaches.
- Discussing the potential implementation of a Universal Basic Income for all British citizens.
- Focusing on raising the minimum wage and simplifying the benefits system.
7. No-One Will Pay More Tax Than Those Earning More Than Them
Taxation should be fair to the taxpayer. Those earning the least should only pay a smaller amount of money in tax, but should always have a lower marginal tax rate than those earning more than they do. That marginal tax rate should apply to all taxes on income, whether from employment, investments or other instruments. We would aim to simplify the tax system to ensure that the tax system is as fair as possible. We want everyone to keep as much of the money that they earn as we can, but it is vital that it is the impact of taxation that is fair, not simply the amounts involved.
- Advocating for fair taxation with lower-income individuals paying lower tax rates than those earning more.
- Aiming to simplify the tax system to ensure fairness.