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The truths they don't want you to read....

Wednesday, May 28, 2008

Quote of the week (if not the year)

As scurrilously reported to me by a Councillor who attended the "Local Income Tax" seminar held by the Comhairle on Monday, at Lews Castle College.

The Convener opened the consultation on the SNP policy for a Local Income Tax by explaining how unworkable and inappropriate it was to impose a local income tax on the Western Isles. He was supported by a number of Councillors, and then the Councillors moved to discussing the substance of the matter (with open minds, obviously!)

After much debate about the pros and cons of LIT, SNP Group Leader reiterated his support for progressive taxation* quoting Marx, "From each according to their abilities; to each according to their needs"

To which a Labour Councillor responded "That doesn't work here!"

* It's not progressive, favouring the wealthy - as I have detailed previously.

4 comments:

a a macdonald said...

How can the LIT be made to be progressive? How easy (or difficult) would it be to collect tax on all earnings including stuff like dividends, interest etc.?

a a macdonald said...

How can the LIT be made to be progressive? How easy (or difficult) would it be to collect tax on all earnings including stuff like dividends, interest etc.?

Angus said...

I will say this only once :-) every PAYE taxpayer living in Scotland has /S at the end of their employer tax reference, which is especially important if you work for a company with an English tax office. All other taxpayers are identified solely by their postcode.

By applying a LIT (based on Local Authority of residence) through the coding notice - in exactly the same way as, say, car benefit is taxed will allow simple collection and distribution of funding. The self-employed etc. would see an additional line on their tax bill.

The systems are all in place, and were established by the Inland Revenue in 1997, so there is no systemic problem with collection.

Political will is another matter...

Anonymous said...

Here is direct proof that Manford and Nicholson are still conjoined at the hip. He obviously still prefers Angus to the 3 wanabees he has in his 'group'.