Fund Local Authorities with local income tax.

The concept of Council Tax was ill thought out and rushed in as a knee jerk response to replace the Community Charge.  The Community Charge was an excellent idea because it was based on the not unreasonable notion that everyone in a society should contribute to funding the services which they all receive in one way or another.  One person living alone would sensibly pay less than a family of 4 or 5 or more living in an identical property next door.

The old rating system was totally bankrupt and becoming untenable and unworkable; it needed replacing.  Whether or not the Community Charge was the ideal solution to replace it is open to debat,e but what I firmly beleive most people would agree with is that Council Tax is now in the same boat as the former rating system at the end of its life.  Council Tax combines the worst aspects of both the rating system and the Community Charge in that it presupposes that the house you live in is in direct correlation to your personal wealth and hence your ability to pay; it then also includes any other people in the property when over the age of 18 but does not make them responsible for their contribution, hence the entire burden falls on the householder.

Many thousands of people bought properties during the period of the Community Charge, properties they would not have considered previously because of the burden of rates.  These same people are now assumed to be of a certain wealth for no better reason than the Council Tax band which their property has arbiitrarily been put into when they are actually no better off than they were previously.

Council Tax has increased remorselessly and it is the higher bands which take most of the starin because the percentage increase is applied to an ever increasing larger sum than is the case in the lower bands.  That having been said the overall level of Council Tax is now as untenable and unrealistic as was the former Rates System.  On a personal note our Council Tax has increased by around 185% since we have been in our property; would that our income had similarly increased.

Council Tax is putting the same artificial brake on the housing market that Rates did and making it particularly difficult for people to get onto the housing ladder even if they can get a mortgage because they still have to consider the onerous burden of ongoing Council Tax.  A mortgage does eventually end, Council Tax doesn't; even if you can afford the house the Council Tax makes it an unrealistic option to purchase a house that is otherwise affordable.

It used to be a Liberal Democrat policy to replace Council Tax with a local income tax and I would fully support this idea should it be resurrected.  The only proviso I would make is that it should be administered by the Inland Revenue and not the Local Authorities and it should be a set at a uniform rate, not variable from one council area to another; any genuine shortfalls being made up from the government support grants.  It makes ultimate sense that those who can afford to pay should pay and your ability to pay should not be based, and more often than not erroneously, on the banding of your house.

Whether or not a local income tax is introduced Council Tax is desperately in need of reform to ease the burden it has now become for thousands of households across the country whose Council Tax is actually more than they pay for their mortgage.

Why is this idea important?

The concept of Council Tax was ill thought out and rushed in as a knee jerk response to replace the Community Charge.  The Community Charge was an excellent idea because it was based on the not unreasonable notion that everyone in a society should contribute to funding the services which they all receive in one way or another.  One person living alone would sensibly pay less than a family of 4 or 5 or more living in an identical property next door.

The old rating system was totally bankrupt and becoming untenable and unworkable; it needed replacing.  Whether or not the Community Charge was the ideal solution to replace it is open to debat,e but what I firmly beleive most people would agree with is that Council Tax is now in the same boat as the former rating system at the end of its life.  Council Tax combines the worst aspects of both the rating system and the Community Charge in that it presupposes that the house you live in is in direct correlation to your personal wealth and hence your ability to pay; it then also includes any other people in the property when over the age of 18 but does not make them responsible for their contribution, hence the entire burden falls on the householder.

Many thousands of people bought properties during the period of the Community Charge, properties they would not have considered previously because of the burden of rates.  These same people are now assumed to be of a certain wealth for no better reason than the Council Tax band which their property has arbiitrarily been put into when they are actually no better off than they were previously.

Council Tax has increased remorselessly and it is the higher bands which take most of the starin because the percentage increase is applied to an ever increasing larger sum than is the case in the lower bands.  That having been said the overall level of Council Tax is now as untenable and unrealistic as was the former Rates System.  On a personal note our Council Tax has increased by around 185% since we have been in our property; would that our income had similarly increased.

Council Tax is putting the same artificial brake on the housing market that Rates did and making it particularly difficult for people to get onto the housing ladder even if they can get a mortgage because they still have to consider the onerous burden of ongoing Council Tax.  A mortgage does eventually end, Council Tax doesn't; even if you can afford the house the Council Tax makes it an unrealistic option to purchase a house that is otherwise affordable.

It used to be a Liberal Democrat policy to replace Council Tax with a local income tax and I would fully support this idea should it be resurrected.  The only proviso I would make is that it should be administered by the Inland Revenue and not the Local Authorities and it should be a set at a uniform rate, not variable from one council area to another; any genuine shortfalls being made up from the government support grants.  It makes ultimate sense that those who can afford to pay should pay and your ability to pay should not be based, and more often than not erroneously, on the banding of your house.

Whether or not a local income tax is introduced Council Tax is desperately in need of reform to ease the burden it has now become for thousands of households across the country whose Council Tax is actually more than they pay for their mortgage.

Make Council Tax de-ductable against Income Tax

Presently, Council Tax payments are not de-ductable against Income tax .

So the tax payer is paying a direct taxation,-  twice, – on a portion of thier income. 

– Council Tax invoices are issued at the start of a tax year – for the year ahead – Income tax calculations (for the same year) make no allowance for these direct tax payments already made – Even though issued from two seperate arms of the state, both taxes are direct & the person has no option but to pay.

Why is this idea important?

Presently, Council Tax payments are not de-ductable against Income tax .

So the tax payer is paying a direct taxation,-  twice, – on a portion of thier income. 

– Council Tax invoices are issued at the start of a tax year – for the year ahead – Income tax calculations (for the same year) make no allowance for these direct tax payments already made – Even though issued from two seperate arms of the state, both taxes are direct & the person has no option but to pay.

Reform Council tax

Council tax should be revisited and made fairer! Rather than charging per household, a household should be charged per person living in that household (for instance per adult). I get so frustrated, when I see that my husband and I pay as much as our next door neighbours who live in the same house with 6 adults. It is grossly unfair and I feel there is no equality in the system.

Why is this idea important?

Council tax should be revisited and made fairer! Rather than charging per household, a household should be charged per person living in that household (for instance per adult). I get so frustrated, when I see that my husband and I pay as much as our next door neighbours who live in the same house with 6 adults. It is grossly unfair and I feel there is no equality in the system.