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Local income tax - what will you pay?

PostPosted: Tue Mar 11, 2008 10:48 pm
by Mori
This replacement of the council tax seems just a bit too good to be true.

Scotland's council tax bills 2008/09


BBC

Local income tax - what will you pay?

The Scottish Government has launched a four-month consultation on bringing in a local income tax, set at 3p in the pound, to replace council tax.
Here is how the new charge, if approved by parliament, might affect you.

To work out if you would pay less or more under the new system, compare the figures with council tax levels in your area here:

Single pensioner couple on an income of £20,000 would pay £374 under the local income tax.

Single male household with an income of £25,000, the average male Scottish wage, would pay £593.

Single female household with an income of £20,000, the average female Scottish wage or a newly qualified teacher, would pay £443.

Single person household with an income of £33,675 would pay £854.

Single person household with an income of £54,000, for example an MSP, would pay £1,463.

Single person household with an income of £62,000 would pay £1,703.

Family with one adult making the minimum wage of £5.52 per hour, would pay £164.

Family with one adult working full-time earning £25,000 and the other making £8,000 for part-time work would pay £677.

Family with a newly qualified nurse and police officer, earning £20,000 and £24,000 would pay £1,007

Family with a £50,000, full-time earner and a £10,000 part-time earner would pay £1,487.

Family household with two people both earning £32,600 would pay £1,643

Source: Scottish Government

Re: Local income tax - what will you pay?

PostPosted: Tue Mar 11, 2008 11:35 pm
by red_kola
Well if you put it like that, how could you argue against it?

Re: Local income tax - what will you pay?

PostPosted: Wed Mar 12, 2008 12:10 am
by Pgcc93
Going by that example I'd save at least £500 ...where do I sign up?

Re: Local income tax - what will you pay?

PostPosted: Wed Mar 12, 2008 12:48 am
by Dave
I already get ass-raped for tax, this will cost me a frightening amount of money.

You pay council tax for the council to give you services, how is my salary linked to how much services I take. A house with 2 adults and 2 kids is just that and you pay for that service. As it stands I live in the middle of nowhere so I get fuck all from the council anyway so why should I get taxed again. Bunch of c^&*s, I was all for the Scottish Government until this pish.

Re: Local income tax - what will you pay?

PostPosted: Wed Mar 12, 2008 1:04 am
by stinkpad
Council tax isn't based on what services you take, it's based on the value of your house. This new proposal is much fairer as it takes into account your ability to pay, not what some past valuation of your house dictates.

Re: Local income tax - what will you pay?

PostPosted: Wed Mar 12, 2008 7:04 am
by Josef
The argument about property tax v personal tax has been had many times. People's personal opinion on the 'fairest' method generally varies according to which one is cheapest for them personally.

I live in a tenement flat in one of the poorer areas of town because I couldn't afford what is, effectively, the 'property tax' attached to flats in the West End (say), i.e. my mortgage would quadruple were I to swap my flat for an identical one in Dowanhill. In that respect, the value of my house is already indicative of my ability to pay.

I haven't read the full proposal, just the summary on the links above, and based on that I have no great axe to grind either way: I come out broadly equal.

I am, though, mildly suspicious of a proposal in which the vast majority of people appear to save money. It sounds a bit like we're all fecked if J.K. Rowling leaves the country.

Also, I'm presuming that local means Scotland-wide, which would presumably imply that local council income would come from centrally-set block grants (because, for example, the average income in Western Isles is lower than in Edinburgh). I'm not sure how thrilled the councils will be by this.

Re: Local income tax - what will you pay?

PostPosted: Wed Mar 12, 2008 11:33 am
by AlanM
The very wealthy are very good at reducing the amount of tax they pay with a property value based system its more difficult for them to disguise it's value.

I think there should be some tweaking of the current system - the addition of more bands at the top would be a good place to start

Re: Local income tax - what will you pay?

PostPosted: Wed Mar 12, 2008 11:43 am
by John
Sorry but I don't trust the current estimates, it looks like spin to me. Is it honestly credible that they would change the system so we could pay less tax?

Re: Local income tax - what will you pay?

PostPosted: Wed Mar 12, 2008 12:59 pm
by Fat Cat
JohnR wrote:Sorry but I don't trust the current estimates, it looks like spin to me. Is it honestly credible that they would change the system so we could pay less tax?


No, because along with the LIT, you can bet your house that they will also introduce a property tax. The income generated from the LIT is far below that of the council tax so they will have to generate income from somewhere.

This SNP government will bankrupt us all.

Re: Local income tax - what will you pay?

PostPosted: Wed Mar 12, 2008 5:08 pm
by nuttytigger
how does it work if u are renting a place from a private landlord?

also we're on £17,500 and i'm on £5023 so how much would we pay?

overall income is £22523 so its less then they are saying or is it per person u pay?

Re: Local income tax - what will you pay?

PostPosted: Wed Mar 12, 2008 5:17 pm
by lynnski
Screw that. looks like I'd be payin about £400 more a year!

Re: Local income tax - what will you pay?

PostPosted: Wed Mar 12, 2008 6:37 pm
by Schiehallion
dave3009 wrote:I already get ass-raped for tax, this will cost me a frightening amount of money.

You pay council tax for the council to give you services, how is my salary linked to how much services I take. A house with 2 adults and 2 kids is just that and you pay for that service. As it stands I live in the middle of nowhere so I get fuck all from the council anyway so why should I get taxed again. Bunch of c^&*s, I was all for the Scottish Government until this pish.


In that case I presume you're in full agreement that all of us with no kids should get 34% of our council tax refunded since that is what is spent on schools?

Re: Local income tax - what will you pay?

PostPosted: Wed Mar 12, 2008 8:29 pm
by Dave
Schiehallion wrote:In that case I presume you're in full agreement that all of us with no kids should get 34% of our council tax refunded since that is what is spent on schools?


Yes I'd agree with that along with the current system for giving a discount for single folk. I presume you're in full agreement that all of us who pay private school fees, private wealth cover and private health insurance should get a discount on our tax because we don't burden the country with our problems?

Don't see that happening - Do you?

Re: Local income tax - what will you pay?

PostPosted: Wed Mar 12, 2008 9:34 pm
by Dexter St. Clair
pay private school fees, private wealth cover and private health insurance


You don't pay the full costs of any of the above. All so called not for profit, train nobody, tax exempted leeches. None of could survive without the welfare state.

Re: Local income tax - what will you pay?

PostPosted: Wed Mar 12, 2008 9:40 pm
by Dave
Dexter St. Clair wrote:You don't pay the full costs of any of the above. All so called not for profit, train nobody, tax exempted leeches. None of could survive without the welfare state.


Some evidence for you theory please! I still pay so should achieve a discount of some sort. I think you need to go look at these places and see what they offer, perhaps once you have experienced both (like I have first hand) then you can comment.

EDIT - And at the end of the day my salary has f*** all to do with what council tax I pay, the current system based on house price is extremely loose and as previously posted a flat in the west end can be replicated in other parts of the city for less tax, I have money so I have more choice - No?