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A Prime Minister with a plan

Not 'our' one, naturally:

"Dutch Prime Minister Jan Peter Balkenende and Minister of Social Affairs and Employment Piet Hein Donner favour a proposal to introduce a flat rate tax in the Netherlands".

Nice one chaps. On the downside, the prospective rate is pretty eye-watering - *37%*.

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Blogger Obnoxio The Clown said... 10:28 am

I'd take a 37% flat tax if that was it: no council tax, no VAT, no NI, no duties or levies ...

As it stands, pretty much everyone in this country pays more than 37% tax already.  



Blogger Armchair Sceptic said... 3:58 pm

Spot on, Obnoxio. From 2011 basic rate tax payers will pay:

- 20% Income Tax
- 11.5% NI
- 2% (roughly) of income on council tax (e.g. £1,000 Council tax for someone with income of £20,000)

That's around 33.5% already, and if you are a higher rate taxpayer on 40% Income Tax to begin with it gets worse...  



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