If you were Chancellor, what would you do?
I would simplify the tax system so there were no ways to get out of paying tax. I’d raise the threshold at which you start paying income tax and make everyone pay the same standard rate – probably around 30 per cent.
I think the Government would make more tax revenue overall because there would be fewer tax dodgers. Also, by raising the threshold, more people on low incomes would be taken out of tax, so I think it would be fairer.
Indeed, I recall a proposal from Madsen of exactly this – well, near exactly, the tax rate was 33%.