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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To ask how you would reform the tax system?

51 replies

BuffaloCauliflower · 11/06/2024 08:38

I’ve been thinking about this for a while and of course lots of tax talk for this election, but think more clued up Mumsnetters can probably do better than me. This morning I’ve discovered that in the U.S. they get money off their taxes for mortgage interest and doing home improvements. Mind blown, I’d never have thought of that. I think you can file as a couple instead of two individuals there as well, and tax breaks per child? Of course lots wrong with the U.S. system (everyone having to do their own tax return, and lobbying accounting firms preventing a PAYE scheme that would put them out of business for one) but it got me thinking about possible changes in general. I’m mainly thinking around personal tax rather than business tax, though feel free to think big.

I think putting the personal allowance way up to bring a lot of people out of paying tax would be a start, this would also save some money on UC for the lowest paid. We know most tax is paid by higher earners anyway. Fix the cliff edge that’s earning over £100k too. Maybe be able to opt to pay taxes as a couple if you choose if one member of the couple is a much higher earner, for UC you have to be treated as a couple for your income but not for other households.

Interested to hear thoughts

OP posts:
Spendonsend · 11/06/2024 08:55

I'd lose the personal allowance as the idea is everyone pays into the welfare state and everyone can use it.

I'd scrap child benefit entirely and instead fund proper childcare.

I think I'd go with a 10% income tax from 0 to 35k to reflect that I just ditched the personal allowance.

Then 20% to 60k

Then 40% from after that.

I dont know what I would do with national insurance.

I'd change stamp duty to a capital gains tax on sale rather than value on purchase.

I'd do something different to council tax around wealth. I dont know if it woukd just be more bands as i feel the top and bottom band are too close.

I havent costed or thought through these suggestions at all.

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