THE Lib Dem Local Income Tax sounds fair in theory but there are many practical details that I don't understand.
It is to be based on income but administered locally. In a low income or area of unemployment if the tax levy is too low to meet service spending needs, will the tax take in a wealthy area be used to cross-subsidise?
It is hard enough paying tax. Will taxpayers necessarily be happy with subsidising spending decisions in another district? In a wealthy area, if the tax take is needlessly high for spending needs, what might happen to the surplus?
Again, cross-subsidy or returned to the Exchequer? Will national government have any say in local spending decisions? How is a local tax based on income easily modified the following year if costs have been cut the previous?
The Lib Dems are very keen on regional government. At some stage do they envisage Local Income Tax being administered from a regional rather than a district or county centre? This would perhaps be more cost-effective but not so sensitive to local needs/changes.
WENDY HANDS,
Upton-upon-Severn
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