Ditch Council Tax
Spend Less or Tax our Sins Say Consumers!
Stroud & Swindon, the UK’s 14th largest Building Society, today revealed which of the UK’s taxes consumers hate the most and what they would like them replaced with.
Following a nationwide survey it was shown that council tax is the tax most hated by consumers (30%). Inheritance tax was the next least popular with 23% voting for its abolition while income tax received 14% of votes.
Top 5 most hated taxes:
|
Tax |
Percentage of respondents that would like to see it abolished |
| Council Tax |
30% |
| Inheritance Tax |
23% |
| Income Tax |
14% |
| Stamp Duty |
11% |
| Value Added Tax |
8% |
Surprisingly those in the 56+ age range, with fewer council tax paying years ahead of them, were most eager to see council tax abolished (37%). This may be due to the fact that this generation still remember poll tax fondly. Those in the 18-25 age range seemed to understand the need for this tax and only 23% were eager to see it abolished. However, this may be indicative of an age group where the majority are still living at home and have yet to worry about this cost.
Stamp duty was also hated by 1 in 5 respondents (11%). Those in the 26-35 age range were most keen to see it abolished with 15% voting against it. This may reflect the period in life when the majority of people are making their first property purchase and are exposed to stamp duty for the first time.
As an alternative to these more traditional taxes, consumers suggested raising funds by focusing on taxing non-essential expenditure. These included an increase in, or introduction of, “sin tax” on products and activities such as alcohol, smoking, gambling and junk food. These are things that people have a choice over whether they participate in them and therefore pay the corresponding tax.
Alternative tax suggestions:
|
Suggested Tax |
Percentage of Respondents |
| Nothing - Pay too much tax as is! |
22% |
| Sin Tax (including cigarettes, alcohol, gambling and junk food) |
19% |
| Wealthy People |
6% |
| Petrol |
5% |
| Car tax (including 4 x 4's and second cars) |
5% |
However, the most popular suggestion was simply to do away with a tax and not replace it. Consumers feel that they are taxed far too much as it is and would like some respite from any further taxes. This may be symptomatic of the belief that the government do not spend current taxes efficiently enough.
A form of green tax on gas guzzling cars such as 4x4’s was also a popular alternative and is again not mandatory. Those questioned for the survey also suggested some amendments to current taxes that could make the tax system seem more “fair”. Instead of paying stamp duty on all property purchases, it was suggested that only those buying their second home or who were further up the ladder should be taxed, thereby making it easier for first-time-buyers to get on the housing ladder.
Increasing taxes on wealthier people was also seen as a popular amendment to the existing income tax rules. This would be introduced in conjunction with a reduction in income tax for those on lower incomes and would help to narrow the financial gap between the rich and the poor.
Commenting on the findings, Paul Chafer, Commercial Director at Stroud & Swindon, said: “It is very interesting to hear the public’s views on taxes. The government implement a wide range of taxes that people accept are a necessity but which they are rarely consulted on. It is especially interesting to see how unpopular IHT is despite the recent doubling of the threshold to £600,000 for married couples and civil partnerships.
“Stamp Duty is particularly topical at the moment, and is often seen as exacerbating the financial strain imposed by high house prices. The rise in stamp duty over the past ten years has been shown to be massively out of proportion with the rise in salaries and this research shows that consumers are really starting to feel the negative effects.
“It’s also interesting to see that council tax was voted as the tax consumers would most like to see abolished. This tax should, in theory, be the one that offers the most obvious benefits to consumers through improvements to their local infrastructure. The fact that consumers want to see it abolished would suggest that they don’t feel they’re currently getting their moneys worth from their council tax.
“Obviously the government are unlikely to scrap any of the main taxes but the results of this survey suggests the need for them to show that tax pounds collected are going to good use which would make it slightly more palatable for most consumers.”
~ENDS~
For further information please contact:
David GreenleafCorporate Communications Manager
Stroud & Swindon
01453 768244
Methodology:
TWC questioned 942 adults across the UK online until 4th November 2007.
About Stroud & Swindon Building Society:
Stroud & Swindon is the 14th largest building society in the UK with assets in excess of £3 billion. The Society operates through a dedicated team of intermediary business development managers, with a branch network of 22 offices and 20 agencies in the South West, complemented by a direct call centre based in Stroud and website
www.stroudandswindon.co.uk.