The 2020 Tax Commission is a joint project between the TaxPayers’ Alliance, the independent campaign for lower taxes, and the IoD, Europe’s largest membership organisation for business leaders.
To create the conditions for stronger economic growth and jobs, while treating taxpayers fairly, the Government must reform taxes to make them lower, simpler and more transparent.
To achieve this, the 2020 Tax Commission recommends the Single Income Tax, which can be introduced in six steps:
- Tax should be cut to 33 per cent of national income.
- Marginal tax rates should not exceed 30 per cent, and the personal allowance should rise to £10,000.
- Taxes on capital and labour income disguised as business taxes should be abolished, and replaced with a tax on distributed income.
- Transaction, wealth and inheritance taxes should be abolished.
- Other consumption taxes need to stay for now, but transport taxes should be cut.
- Local authorities should raise half of their spending power from local taxes.
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