Triple tax cut would revive economy

In reducing tax burdens in the longer term there should be:

Zero National Insurance paid on income below £15,000;

Zero income tax paid on income below £15,000;

Zero council tax paid on income below £15,000.

The triple guarantee on tax would lift the most vulnerable and most impoverished out of direct taxation completely.

The demand for council tax benefit would be seriously reduced because the reforms proposed above would cancel out the need for council tax benefit expenditure in the first instance.

The demand for working tax credits would be reduced because why should you be taxed and then be given back the same money in the form of benefits.

In response to the restrictions placed upon much of the consumer economy by the Government because of the pandemic, to rebuild jobs and economic growth the Government will have to inject demand into the economy once the restrictions are completely removed and the triple tax guarantee policy would accomplish that.

The guarantee would also reduce the need for public sector, local government and civil service pay increases and so combined with savings on council tax benefit, housing benefit and working tax credits the net cost to the Treasury would be reduced to nominal sums.

There are also the extra jobs created by extra consumer spending so there are additional savings to be made in the Universal Credit budget as well through implementing the triple tax guarantee.

Oliver Healey

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