100% Income Tax

Alternately........

Keep the Citizen's Income of 55 pounds per
week for all UK citizens aged 16 onwards, Disability Living
Allowance at extra 100 pounds p/w, and Jobseeker's Allowance
increasing from zero pounds per week to 30 pounds after three
months and then another 20 pounds at twelve months, but the
income tax is at a universal flat rate of 100%.

On the face of it, this is insane, but the tax is again on
income only, not benefits. The plan is to provide all workers
[full-time, part-time and volunteers, so long as they are
working for an organisation or another individual]
with a weekly income of 350 pounds per week by adding a
'General Worker's Allowance' of 295 pounds per week
on top of the Citizen's Income, while all workers earning less
than 100K a year would recieve a tax rebate of 20% at the
end of each financial year.

The assumption for those earning high wages is that high earners
usually find ways to avoid paying tax but at least those who
normally avoid doing so would pay at least 100K a year.

Both an upside and a downside is that employers would benefit
from this in that they could effectively pay zero wages and
the workers would still recieve an income from the government.
This may decrease unemployment but could also create a number
of 'non-jobs', although charities would greatly benefit from
this.

Neither would it be worth employing illegal workers or
paying cash in hand, although this practice would hardly
entirely go away.

The only individuals exempt from taxes on income earned would
be students and asylum seekers, plus full-time domestic students
would get 205 pounds per week during term-time. Foreign students
would be able to work as well as asylum seekers.There would be
no tuition fees.

Asylum seekers and pensioners would recieve a weekly allowance
of 100 pounds. Asylum seekers would be allowed to work, but
would have to pay income tax after three years in the
country, although the weekly allowance would remain until
citizenship is granted.It ought to go without saying that
students and asylum seekers would be ineligible for the
General Worker's Allowance.

Corporation tax would probably go down and taxes like
VAT reduced to a token 1%, while council tax
can be abolished entirely.