The London based Institute of Economic Affairs (IEA) has suggested repealing some 20 taxes in a reform of the tax laws, in an effort to simplify the system. Out would go capital gains tax, inheritance tax and council tax, among others, and in would come a flat rate income tax (at 15%) and, among others, a new housing consumption tax on rents apparently to mimic VAT and a new location land value tax. One of my personal favourite taxes, VAT, would remain fairly unscathed.Phew!
Tax fans need not panic just yet as these are just “think tank” proposals at the moment. Watch this space.
Tax Barrister, Accountant