[jambutty]

Taxation

The onus of taxation would be placed on what is bought and not what is earned for the majority.

Thus there would be no Income Tax or National Insurance contributions on earnings that are below the national average plus 10%. Instead VAT would be increased to make up the shortfall for all goods and services except food items, children’s clothing and luxury goods. Food and children’s clothing would carry a 10% VAT, whilst luxury goods would attract 50% VAT.

Earnings above the national average plus 10% would attract Income Tax and National Insurance contributions of 20% with an increasing sliding scale for higher earnings.

Money from salaries sent abroad would attract a VAT of 10%.

Un-earned income like share dividends and savings interest would attract a VAT of 10%.

All benefits would be increased pro rata to compensate for the additional VAT payable.