Tuesday, November 25, 2008

When the chips are down...

...you've just got to keep on spinning:
The SNP Scottish Government today claimed popular backing across the country for its planned local income tax, saying that most Scots thought it fair.

On what data have they based that claim on?
Out of 430 people who responded to its consultation paper on a 3p local income tax, 55% thought it was the fairest form of taxation

So, a grand total of 237 people represents "popular backing" in SNP-land?
Other, slightly more relevant reaction to the plan:
• Citizens Advice Scotland, which said some on low incomes would be worse off under LIT because they would not qualify for the same amount they received now in council tax benefit.

• The Chartered Institute of Public Finance and Accountability, which said LIT would have to be set at 4.5p in the pound, not 3p as the SNP wants, to maintain funding and service levels.

• CBI Scotland, which said there was not a "serious" assessment of the estimated costs to business of implementing the LIT.

• The Ministry of Defence said: "Privates in single living accommodation would see their charges rise from £33 a year to £600 under LIT, an increase of over 1,700 per cent. Experienced personnel would be hit hard, too. An army warrant officer could see their charge rise from £84 a year to £1,570 in LIT, an increase of over 1,700."

5 comments:

Anonymous said...

I do not see this as relevant to unionist arguments.

If you want to complain about local income tax then should you not be savaging the Lib Dems as well since they support a local income tax (and have supported such a thing longer than the SNP) - and their support is crucial in Parliament to get the measure through.

Generally (for its pitfalls), polls have shown more support for the tax on principle compared to the present system.

Hen Ferchetan said...

To be fair 500 is usually considere as good a statistical sample as 50,000.

Not strictly true here though as it wasn't a poll but a consultation so the 500 or so that answered were not weighted.

- said...

A bit too similar to the 'private referendum' on Section 28 done by their supporter Brian Souter for my liking.

The Aberdonian: one of the chief differences between the SNP and Lib Dem visions of LIT is that the Lib Dems actually want a _local_ income tax, whilst the SNP want a national one, with the rate set by Edinburgh, thus actually centralising more power in their hands.

Anonymous said...

DG - Whilst there is of course the difference between between the Lib Dems and SNP who sets the tax - although apparently the Nats are considering giving councils discretion in setting the rate in the long term - much of the criticisms of against LIT SNP could be levied against LIT Lib Dem. Indeed Lib Dem is under more criticism from business due to the potential 32 different rates of council taxation making it harder for businesses to make deductions. In the central belt for example some businesses might have employees resident in up to 10 council areas and counting.

The Japanese use a system similar to SNP's. The centrally set rate is 10% (6% for municipal government, 4% for prefecture). Japan (for its economic problems) is hardly an economic minnow.

Personally I prefer a mix of income, land, sales and maybe a nominal residency (i.e. poll) taxes - as used in Japan - so nobody can actually scream "nae fair"

(Japan's local government residency tax is about £25-£50 per year depending on where you are)

Of course the EU restricts the varying of VAT apparently within states. However you can get round it by calling it an excise/levy/duty as they do in Germany. Belgium etc

Unknown said...

Land Tax is best by far.

A Local Sales Tax would be second.

A nominal Poll (Residency) Tax would be third, which just illustrates how stupid I think any kind of Local Income Tax is.