The New Party Throws Down Taxation Gauntlet--PRESS RELEASE 13-04-2005

Although opinion polls suggest that the electorate are prepared to pay higher taxes in return for better public services, this merely confirms that we have become addicted to high public spending. However, it is becoming increasingly clear that not only does high taxation coupled to high public sector spending simply not work but that low taxation regimes are now delivering the best social benefits.

The New Party is therefore calling for the introduction of a Flat Rate tax system throughout the U.K. The New Party will also submit a petition today to the Scottish Parliament Public Petition Committee for an immediate cut of 3p in the pound in personal and corporate taxation as an interim measure to stimulate the Scottish economy.

"Flat Tax" has already been adopted with remarkable results in a number of Eastern European economies, including Russia. The benefits of a flat tax regime are felt most by the low paid. The poorest third of families currently pay 9% of their income in tax, however, under the flat tax proposal they would pay nothing at all and some 10 million taxpayers would escape the tax net altogether. Families on below average incomes would on average pay only half as much tax as at present and higher earners would end up paying a higher proportion of tax due to the removal of incentives for avoidance and evasion.


New Party economist Dr Nigel Knight, comments;
"Flat Tax sits well with the New Party philosophy of stripping out needless and harmful bureaucracy. It also addresses the serious problem created by the latest stealth taxes by ensuring that taxation will once again be based on the ability to pay. The poor pay less and the rich pay more and everyone is happy - hard to believe perhaps, but the proof is there to be seen."

UK studies by leading economists indicate that all those earning less than £12,000 per annum would escape the tax net altogether and everyone else would pay 22p in the pound income tax on earnings above £12,000

ENDS:

The New Party
Grown up Politics for Grown up People

Notes for editors:
1. Full explanatory notes on Flat Tax are available here
2. New Party economist Dr Nigel Knight’s biography is available here
3. New Party Scottish spokesman David McFarlane will hand over the Petition Wednesday 13 April 13.15hrs at the Scottish Parliament Queensbury House entrance where media briefing packs will be available.
4. The New Party has been formed to give the people of Great Britain a sane, progressive and intelligent alternative to the existing parties
5. The New Party is using the 2005 General Election process as a platform to present its policies and will announce three major policies each week over the election period
6. The New Party is not standing candidates this time round
7. The Labour & Conservative parties have now held exclusive power for over 80 years
8. The New Party has the endorsement of Sir John Harvey-Jones
9. Sign up to receive New Party *Email Alerts*
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Previous press release follows

Press Release (1) 11 April 2005 - Immediate
New Party to use General Election
to Showcase New Policies
The New Party will use the run up to the May election to allow voters to compare a number of its radical and visionary policies to what is on offer from the established parties.
The New Party has been formed to give the people of Great Britain a sane, progressive and intelligent alternative to the existing parties which would now appear to consist almost entirely of career politicians painfully lacking in real life experience.
New Party spokesman Dr Nigel Knight, comments;
"In Westminster today vision and dedication have given way to expediency and self preservation. Once world class, we now struggle to compete and major problems lie ahead. Britain has great potential but it is constantly being undermined by short term fixes. If we do not raise both our own aspirations and the aspirations of our government, then we will de-motivate and de-skill an entire generation."
The 2005 election will provide a test bed to establish whether or not the electorate have become sufficiently concerned about the future of their country to give serious consideration to ideas which challenge established thinking. The New Party will announce three major policies each week over the election period along with sufficient background information to stimulate informed debate.
The New Party
Grown up Politics for Grown up People