IFS calls for radical reform of the UK's tax policies

A simpler more integrated tax system always sounds attractive but it would throw up its own problems.

Integrating income tax and NIC would make the starter rate of 'tax' in the UK 31%. It would be a brave politician who proposed an 11% hike in the standard rate of tax.

Aligning the tax treatment from employment, self-employment and dividends would make sense if employment, self-employment and the holding of shares were all the same thing. They are not and that's why tax on them is different and why tax on them should remain different.

Business rates are unpopular and do fall on businesses which operate from bricks & mortar properties. But property based taxes are effective to collect; the properties cannot move and there is always an identifiable owner or occupier to receive the tax demand. Would replacing business rates with a local corporation tax levy or increased direct charges to business for local services be any better?

http://www.telegraph.co.uk/finance/economics/8122353/IFS-UK-tax-system-need-overhaul-to-support-recovery.html