I get criticised for only complaining about high taxes but not offering solutions. Here’s a few ideas on how to fix the UK economy…
Key Problems:
1. Just 36,000 people are paying more tax than 27Million people combined.
2. Large companies are able to transfer profits into lower tax jurisdictions to avoid UK taxes.
3. Money is being hoarded inside companies as cash.
4. Housing costs are too high and supply is too low.
Key Solutions:
1. Triple the number of high earners and halve the number of non tax payers.
- Reduce top rates of tax to 35%. Reduce the entry level of tax to £10K. Stagger the tax bands more gradually in increments of 5% every £10K of increased earnings (5% on £10k-20K, 10% on £20K-30K, 15% on £30K-£40K…)
- Attract 50,000 overseas investors and entrepreneurs with a revised non-dom scheme based on a fixed fee of £240K per year to cover overseas non-repatriated earnings.
- Incubate 50,000 high-potential individuals. Identify 50,000 people in the top 2% of earners who have the scalability to expand into the top 0.1%.
- Create 2 tier benefits. Premium benefits for short term unemployed or in training. Standard benefits for long term unemployed not learning.
- Create an AI system to deliver life long learning with short courses provided by leading UK Schools/Universities in exchange for VAT free status. All citizens can access this learning system for life. All people on benefits must accumulate learning credits every month to maintain premium benefits. Top employers can receive tax credits for providing approved learning modules on topics relating to open job opportunities.
- Small enterprises with less than 15 employees are subject to reduced regulations for hiring. No minimum wage requirements, reduced NI, no fault dismissal for 2 years. Conditional on employees being informed that they are being hired on these terms.
- Introduce special economic zones outside of London that offer reduced corporation tax for having the main offices located within the zone.
- Introduce a “digital export visa” designed to massively incentive digital businesses to be located in the UK’s special economic zones for digital exports.
2. Get large global companies and digital companies paying tax in the UK.
- foreign companies wishing to sell into the UK must acquire a license to do so if revenue is above £10M. These are fixed fee licenses paid regardless of profit. EG: Facebook/Google pays £600M per year fixed fee to operate its ads business.
3. Get money moving out of companies.
- Exclude business bank accounts from high interest savings accounts above the base rate.
- Allow more deductions. Allow company cars, entertainment expenses. Allow small businesses to claim childcare, nannies, cleaners, cooks and drivers.
4. Make homes more affordable…
- Make residential property building and renovations more tax effective. No/reduced stamp-duty when moving to a smaller, cheaper residential home. Tax credits for bringing dilapidated homes back into the market.
- Interest payments on investment properties attracts a 1% surplus rate of interest used to reduce the national debt.
Let me know which of these you think are sound and which ones you think I may have a blindspot on.