Make Low Council Tax Main Labour Policy

Thepowerlesslowpaid Fri May 09, 2008 at 08:21:08 PM GMT Print-friendly version Facebook

  A popular policy for those on a low income would to fix the maximum of council tax to say 5% of net income.



 Councils should live with in there means, ever raseing tax of people on a lowing income is unjust.                                 The labour Party should fix a none means test council tax.


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Make Low Council Tax Main Labour Policy | 14 comments (14 topical)

Re: Make Low Council Tax Main Labour Policy (#1)

by HenryG on Fri May 09, 2008 at 10:12:19 PM GMT

I agree that we need to reform council tax and it's pretty shocking that we haven't done so since 1997.  This was a Tory policy which we're still getting hit with it. 


Re: Make Low Council Tax Main Labour Policy (#2)

by Anonymous X on Fri May 09, 2008 at 11:43:16 PM GMT

I massively agree with you. Council tax has really impoverished many young adults I've known over the years, many recent graduates. I do bring that up many times at my CLP's monthly meetings, to no avail (my CLP only seem to care about middle-aged and middle-class, unfortunately).


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Re: Make Low Council Tax Main Labour Policy (#3)

by fluffymike on Sat May 10, 2008 at 06:53:18 AM GMT

If it were used to provide decent bus services and a wide range of decent and efficient services people wouldn't object to their Council Tax so much - but it's the amount that goes on jollies across the globe and glossy self-publicising of the council that offends many council tax payers.

What needs doing is an increasing of the number of bands so that there are more higher level bands, which would alleviate much of the cost on lower band houses.


Re: Make Low Council Tax Main Labour Policy (#4)

by swatantra on Sat May 10, 2008 at 02:07:39 PM GMT

Make that Local Income Tax, and I might agree. Low income tax can be related to reduction in services. What we need is a simpler tax system which ordinary people like myself can understand: the more income you earn the higher tax you pay. And that is readily calculated; you don't have to wait 15 years or never, before property is revalued.


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Re: Make Low Council Tax Main Labour Policy (#5)

by madasafish on Sat May 10, 2008 at 03:14:13 PM GMT

As I have said before: local income tax favours the non doms, the rich and those like me.
We'll all end up paying nowt.

And if you don't understand why, you should not be proposing such a change.


Re: Make Low Council Tax Main Labour Policy (#6)

by swatantra on Sat May 10, 2008 at 03:43:20 PM GMT

I'd appreciate if you went over the argument why again in more simpler terms. If its a question of non-doms and the rich avoiding/evading tax, then we need to tighten the screws on evaders.


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Re: Make Low Council Tax Main Labour Policy (#8)

by Free Radical on Sat May 10, 2008 at 11:57:55 PM GMT

Swatantra
We used to have a very fair system closely based upon people's ability to pay - "the rates," based upon ratable value of properties - the rich paid hugely more than the poor. True, there were anomalies like single old people without income living in large houses after children had left and partners had died - but these were sorted out pretty well by a rebate system. Local income tax, while superficially attractive is not particularly fair for the reasons madasafish mentions. And of course some of the rich don't need income... so it is better to tax assets like houses. The rates were also virtually impossible to evade - unlike an income tax. The rates were not popular but then no tax is popular.

Maybe it's a good time to bring them back...


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Re: Make Low Council Tax Main Labour Policy (#9)

by Anonymous X on Sun May 11, 2008 at 01:20:11 AM GMT

I'm not personally committed to any particular way of reforming local taxation, but I hope some genuine reforms to the current system are implemented. Council tax is too regressive.


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Re: Make Low Council Tax Main Labour Policy (#7)

by Curlew on Sat May 10, 2008 at 08:25:19 PM GMT

Are the non-doms paying council tax now?

Why is it politicians on this country are forever trying to win votes by kidding the public that you can get something for nothing.  Taxes are there to pay for services - lower taxes lower service.


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Re: Make Low Council Tax Main Labour Policy (#10)

by gpmalpas on Sun May 11, 2008 at 11:13:10 AM GMT

sadly labour do not subscribe to non-means testing.it is their raison d'etre and is essential in the creation of the "client state".


Re: Make Low Council Tax Main Labour Policy (#11)

by David Boothroyd on Sun May 11, 2008 at 11:53:40 AM GMT

It always shocks me how the people who go on about Council Tax being too high never mention Council Tax Benefit, which pays your Council Tax if you have a low income. The Council Tax protesters, who claim inability to pay, either have deliberately not applied for CTB for some reason of their own, or are ineligible for it because they have enough income or savings.

True it is that Council Tax is regressive; that's because it was a Tory policy and put homes into bands so that the rich got a cheap deal. The simplest way of sorting that is to change to taxing at a fixed proportion of the capital value of homes. However there are other things that should be sorted out in local government finance as well, including the gearing effect which distorts the difference in taxation levels between authorities, and the accountability gap in precepting authorities. 


Re: Make Low Council Tax Main Labour Policy (#12)

by Mark Wadsworth on Mon May 12, 2008 at 02:13:24 PM GMT

Fluffymike and Madasafish are stumbling in the right direction.


Local income tax and means tested CT benefit both head off in the wrong direction, and ultimately favour property owners at the expense of workers/income generators.


Far better is to replace all property related taxes (not just C Tax/benefit, but Business Rates, Stamp Duty Land Tax, Inheritance Tax, VAT on domestic fuel, insurance premium tax, TV licence fee, capital gains tax and anything else you can think of) with Land Value Tax!!

That will keep property prices low and stable; it will encourage efficient/full use of land and buildings and will give local councils an incentive to provide real value for money - if they provide good services, land values and hence tax receipts go up and vice versa!

BTW, because of the economics of this, it will not affect tenants - the tax is borne by the landlord. Fair, simple, impossible to evade and has more good effects than bad effects (all taxes have bad effects, let's not kid ourselves there).

But Labour had their chance to introduce it back in 1997 and totally blew it, despite Fred Harrison and the Labour Land Campaign's best efforts, so to hell with this government, frankly.


Re: Make Low Council Tax Main Labour Policy (#13)

by jkitleft on Tue May 13, 2008 at 07:13:19 PM GMT

some taxes you mention are a good thing, imo.
Sure inheritance tax is unpopular, but people like Warren Buffet support it, because they don't want the inheritees to lie around all day, rolling in money. That is why only 6% of people pay it. It should be reformed, in order to tax the beneficiaries, as it is not really an 'inheritance tax' as such. Furthermore, tax on people not as relevant, so issue and spuse pay less, but a distant cousin pays more.

Capital gains, I support.
Stamp duty is basically pointless, but it is not denying people from buying homes.
VAT should be extended on to airline fuel, but with legislation to make sure that if any costs need to be reduced by airlines, or oil companies etc. to fulfil taxes on fuel, it would first come directly out of company bosses' hands, not that of the consumer.


The point of taxes under Labour, should be that the lowest-income earners aren't paying at all, and that the rich do not avoid loopholes, and pay 50%, and don't evade taxes, and don't get pension breaks, and don't avoid NI contributions etc.


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Re: Make Low Council Tax Main Labour Policy (#14)

by madasafish on Thu May 15, 2008 at 05:58:00 PM GMT

"that the rich do not avoid loopholes, and pay 50%, and don't evade taxes, and don't get pension breaks, and don't avoid NI contributions etc."

and on that basis most pension funds  -incl company ones - would give much worse benefits... and you've just made the City of London a third rate financial centre.. and driven the seriously rich into tax exile... and reduced the tax take by a few £ billion.

Well done.


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Make Low Council Tax Main Labour Policy | 14 comments (14 topical)