30 Per Cent Income Tax For All Call

30 Per Cent Income Tax For All Call.

The 2020 Tax Commission's Report is calling for a single 30% rate of income tax in order to boost growth in the UK.  The report also calls for the abolition of national insurance and for the basic personal allowance to be raised to £10,000.

The commission is a joint project between the Taxpayers' Alliance and the Institute of Directors.  It claims that the changes would result in a tax cut of £3,400 for a two-earner household with an income of £28,000.

According to the commission, changing to a single income tax rate would add £49.1bn to the national deficit in the first year, if the changes were not phased in or if spending were not cut further and it predicts that after 15 years the change would actually reduce overall borrowing by £35bn.

The goverment welcomed the report's contribution to the long-term debate on tax policy, according to a Treasury spokesman, he also added that the report contains some radical suggestions and will stimulate useful debate.  The government is committed to a simpler, fairer and fiscally sustainable tax system and supports the case for reducing headline rates of tax to support economic growth.