The think tank the Institute for Public Policy Research (IPPR) has produced a briefing paper which puts forward some radical proposals to reshape taxation in the UK.
The 'Just tax' report, published in September, doesn't represent official party policy, but could inform the tax policy of Labour and perhaps the Liberal Democrats as we wait to see the party manifestos.
In this video, Technical Connection joint managing director Tony Wickenden talks through the think tank's main ideas to reform income tax and capital gains tax.
He explains the main premise behind the paper is that it is unfair for income from wealth to be more 'lightly' taxed than income from working.
As such, the IPPR argues there shouldn't be any difference in the way income from savings and investments are taxed compared with earned income.
It also argues capital gains should be treated (and therefore taxed) as income.
Among its recommendations is the proposal to move away from the current cliff edge income tax rates to more gradual increases, with income above £100,000 taxed at 50 per cent.
On capital gains tax, the IPPR would also like to see the removal of rebasing on death.
Tony adds that given the yield to the government of these proposals is estimated to be between £40bn and £50bn, while they are by no means official policy they should equally not be discounted.
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