The SNP plan to impose an extra 3 pence in the pound on gross incomes in the year after next. This would replace the current council tax. They believe it is a better form of tax because it takes into account one's ability to pay. Low earners would benefit.

Now I was a bit sceptical about this. While my wife and I earn slightly less than the average, we both live in a band A property, so how would it make much difference? However, our council tax this year is £965, but if this was replaced by a 3% local income tax, we would be better off by £391.

I would have to say there is some merit in this idea, but I suppose it depends on your personal situation. What are people's thoughts on this?
[Rep]

I think it's a bad idea. For a start we need to get rid of income taxes of all persuations.
The parliament should hand back power to the counties and they should allow local people to choose the best method of local taxation to support local infrastructure and historical sites in the charge of the council.

A one size fits all approach is not the best. For example if you live in a historic town which survives on tourism, locals may want to see more of their locally raised taxes placed into maintaining historic buildings in order to keep the tourist trade booming and thus their local economy. People living in say an inner city area may want to see their local taxes pushed towards improving parking facilities.
I think a council tax system is best, just not our current system.
For a start I'd have it split 50/50 between owner/occupant. If you own and live in your property you pay 100% of what ever tax rate is levied. If you rent the property you pay 50% to cover the facilities you use i.e. bin men etc. and the owner pays the other 50% (my reasoning from this being the 50% they contribute is paying for local infrastructure etc. which ultimatly improve the price of their property and thus the ability to rent it out and their ability to benefit from it).

Ea of dune
[Rep]

Originally Posted by Northumbrian:
The SNP plan to impose an extra 3 pence in the pound on gross incomes in the year after next. This would replace the current council tax. They believe it is a better form of tax because it takes into account one's ability to pay. Low earners would benefit.

Now I was a bit sceptical about this. While my wife and I earn slightly less than the average, we both live in a band A property, so how would it make much difference? However, our council tax this year is £965, but if this was replaced by a 3% local income tax, we would be better off by £391.

I would have to say there is some merit in this idea, but I suppose it depends on your personal situation. What are people's thoughts on this?

Im all for it.
Property shouldnt be taxed only income.
[Rep]

But if the scheme results in the majority of people being better off, then it must have some merit.
[Rep]

The problem is though if it's fixed at 3% it's not very flexible.
A local council tax where the residents decide on the rate is far better and more accountable.
One year the locals might decide they want to pay the equivelant of say 4% in order to fund a park, but decide that they only need to pay 2% the following year in order to maintain the local infrastructure.
I'd prefer this not to a fixed % which would allow, especially Labour councils to start wasting the money on ****.

Ea of dune
[Rep]

Originally Posted by Northumbrian:
They believe it is a better form of tax because it takes into account one's ability to pay.

which means people pay differing amounts for the same service - this is morally wrong in all forms of taxation, but particularly in local taxes.

Increasing taxation on 'those who have the ability to pay' makes larger and larger divisions in society and alienates those who have got off their ass to improve themselves and their lives.

(NB - I left school at 16 with a few GCSE's. I now pay >£2K per month in NI and tax. Then my daughter got absolutely no monies to support her through uni as I am above the earning level threshold. Bitter? Moi?? Too right.)
[Rep]

Originally Posted by Northumbrian:
But if the scheme results in the majority of people being better off, then it must have some merit.

But the tax take will be the same, which means a minority will be loads worse off. fair? My a55.
[Rep]

C_stream> I agree with you on all of the above.

Ea of dune
[Rep]

This isn't a Local income tax at all - this is just another 3p on national income tax that happens to be used to fund local government.
If this were a tax set and raised locally to pay for local services that would be one thing but the one good thing anyone can say about Council Tax is that it is set locally and councils are accountable for how much they charge.
[Rep]

[quote=C_steam;509982]which means people pay differing amounts for the same service - this is morally wrong in all forms of taxation, but particularly in local taxes.

(QUOTE]

But they do now. There are 8 bands of council tax depending on your house value. A single home owner pays one and a half times as much as one person sharing a house with another. 4 adults sharing a house pay half of that of 2 adults.

You sound like you would be in favour of the poll tax, where everyone pays the same. That indeed may not penalise those who earn high wages, but what about pensioners?
[Rep]