An overview of the flat tax

There has been much welcome discussion in recent months concerning a flat tax. In particular, this discussion has had the great advantage of drawing attention to the failings of our current tax system. These failings can be summarised as follows: tax is too complicated; taxpayers start to pay tax on very low levels of income; and the tax system creates unwelcome distortions and disincentives to economic activity. There is also the need to respond to the competitive pressures from the low tax economies of Eastern Europe, and the general fall in tax rates elsewhere in the world. Without significant reform in the UK, these factors could undermine the competitiveness of the UK economy.


David Martin - Thursday, 27th October, 2005