Most of our proposals under the various policy headings have impacts on the economy, individual wellbeing, and the government budget. We are confident that the net effect is a significant benefit to the economy and reduction in the bureaucratic overhead, relative not only to the current hole we are in, but also to the insufficient and often counterproductive proposals of the mainstream parties.
We will bring together our estimates of the impacts of these proposals on the Budget page. But we want first to set out the measures that are specific to the economy and welfare.
Chief amongst these is the replacement of much of our apparatus of benefits and employment taxes (Income Tax and National Insurance) with a Basic Income plus Flat Tax (BI+FT), which should dramatically reduce the perversities, disincentives and bureaucratic expense of the current system and all the mainstream proposals. We set out below:
- Why the BI+FT system works so much better than the current system (the principles), and
- How we would implement the BI+FT system (the practice).
Many of our other proposals work best in association with the BI+FT. They include:
- Scrap the minimum wage
- Rebalance the tax burden to get Britain working and competitive, by reducing taxes on employment (Income tax and National Insurance) and productivity (Corporation Tax), paid for by cuts in government expenditure as far as possible, and (for any balance) by increases in taxes on consumption (e.g. VAT).
- Scrap Inheritance Tax and Stamp Duty and replace them with a reformed structure of Capital Gains Tax.