NOT THE TIMES NEWSPAPER

----- Original Message -----

 

             CUT TAXES, INCREASE REVENUE

 

A radical overhaul of Britain's tax system is an overriding

imperative for reviving the economy and any alternatives

should include the introduction of a flat tax.Such a move

would boost government revenues, reduce tax avoidance

and involve the abolition of all tax reliefs and exemptions.

 

In making the case for lower taxes, we need only look to

the Russian Federation, following the demise of the Soviet

Union in 1991. Here, in order to invigorate a sclerotic

economy, the introduction of a flat tax resulted in a 25%

rise in revenue from personal income tax, followed by

a similar increase in the second year and 15% in year

three.

The Laffer curve predicts such an outcome, attributing the

primary reason for increased revenues to higher levels of

economic growth, stemming from the introduction of the

flat tax. If the UK Government were to adopt this model it

would also benefit the exchequer by increasing declared

income and reducing bureaucracy by simplifying the way

tax is calculated and collected.

A flat tax would have a transformative effect on employers

and employees alike. It would incentivise, generate growth,

boost consumer confidence and get Britain moving.