Public Sector Works and Income Tax
Public Sector Works and Income Tax
Author
Discussion

elster

Original Poster:

17,517 posts

241 months

Monday 26th September 2011
quotequote all
The fact of the matter is technically they don't actually contribute anything from income tax.

Does anyone know why they pay income tax?

Surely a tax free wage would be better and pay them less, it saves on the admin costs surely.


davepoth

29,395 posts

230 months

Monday 26th September 2011
quotequote all
elster said:
The fact of the matter is technically they don't actually contribute anything from income tax.

Does anyone know why they pay income tax?

Surely a tax free wage would be better and pay them less, it saves on the admin costs surely.
It certainly would, as would removing the idea that they actually had a pension fund. But there are so many different tax codes that it would be difficult to make it fair.

On that train of thought, flat tax is a much more fun idea though.

Frankeh

12,558 posts

216 months

Monday 26th September 2011
quotequote all
elster said:
The fact of the matter is technically they don't actually contribute anything from income tax.

Does anyone know why they pay income tax?

Surely a tax free wage would be better and pay them less, it saves on the admin costs surely.
Economies of scale.
I imagine that creating a separate exception/process for them would probably be more costly than just making them pay income tax.

Chrisw666

22,655 posts

230 months

Monday 26th September 2011
quotequote all
I can see the press having a field day with that one.

The jealousy from those that don't understand would be overwhelming.

BoRED S2upid

21,088 posts

271 months

Monday 26th September 2011
quotequote all
I like the theory just pay them all 20 odd % less and they pay no tax. Im sure governments would hate it though its easy for them to solve unemployment by creative lots of new public sector jobs and in the meantime increasing the tax income. Didn't labour do this for decades?

TPA

254 posts

183 months

Monday 26th September 2011
quotequote all
And part of the new taxless deal would be a no strike deal, 25% reduction in gross salary, no income tax and no strike deal.


Guybrush

4,364 posts

237 months

Tuesday 27th September 2011
quotequote all
I've thought that for years. There's really no point in all the red tape for the Revenue and Customs (and yet more pointless jobs) (and payroll systems) managing the tax and NI deductions of public sector workers, when all you are doing is giving them a salary ultimately funded by private sector and then taking some straight back in taxes and NI. What's the point? Just pay them a net amount. (I realise there is some means testing and thus non-standard tax codes, but there must be some simplification possible.