Taxation and Benefit Reform
05 Feb 2010The entire taxation and benefit system for adult individuals should be simplified to make Britain more competitive.
All citizens wishing to claim benefits (or their or carers) should fill out a monthly tax return showing the total income earned for the previous month and tick a box notifying a claim for benefit should their total projected annual income fall below £10,000.
The proposed benefit would be administered in exactly the same manner as the tax system by HMRC. Where benefit was required it would be credited straight into the individual's account. All would be under the same obligation to fill out the forms accurately and be informed that giving misleading information is a criminal offence.
The benefit system should be seen solely as a way of keeping people out of absolute poverty and the benefit fixed to this figure with an individual on nil income claiming a maximum of £135 per week (adjusted for inflation). With introduction of the Over and Out (OAO) system housing benefit, state pensions, national insurance, and job centres could be phased out. People would be free to spend the money in the free market but would be responsible for their housing, bills, and basic necessities. This would allow individuals and families to take control of their own destiny and become more responsible for their decision making. It could in one fell swoop, end sink estates and increase social mobility.
The benefit would be calculated as follows.1 - (Annual Projected Income/10000) * £7020.Where £7020 is the maximum annual allowance. (£135 per week) This formula would provide a "benefit ladder" making sure that people are always better off for taking work than not, gradually phasing out benefits as money is earned upto £10,000 and becoming a net tax payer on amounts over this. There would be no sudden benefit cut outs that make people who wish to work worse off and trap them in poverty.
The formula should not discriminate against people with savings. Private savings should be encouraged, and people with savings who fall on a period of low income should also enjoy benefits without being forced to sell everything and become ever more dependent upon the State.
1 authors proposed articles for this document. The ones displayed were approved by the majority of voters, with 1 voters taking part. The views expressed in the document do not necessarily reflect the view of Diffusionware Limited, it's directors, agents or employees.
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