"A flat tax....would be likely, based on the evidence, to raise a greater amount of revenue."Clearly this will depend on the precise rate of tax. And if does raise more money then who will be paying that extra tax? Not the top rate taxpayers who would no longer be paying tax at 40% and 50%. On that basis alone it's a disgraceful suggestion.
- Graduates would pay the highest effective rate of tax when their student loan repayments are added to their flat tax;
- The tax burden would fall more on the 'squeezed' middle than at present due to the drop in the the 50% and 40% higher rates of tax down to the flat tax level; and
- The so-called success of flat rate tax systems elsewhere are unproven.