AN income tax shake-up which sees low earners pay less and higher earners more could help raise an extra £331 million for public services, according to Patrick Harvie.
The Scottish Greens co-convener wants the Scottish Government to back his party’s proposals under which people earning less than the average salary of £26,500 would pay less income tax, while those earning more would see theirs increase.
Nicola Sturgeon announced last month in her Programme for Government that she would be opening a discussion with other political parties over income tax reform and she is due to bring out a discussion paper on the issue before the Scottish Government’s draft Budget in December.
Ahead of the publication of that paper, the Scottish Greens presented a new report on their plans which would see a shake-up of income tax rates and bands.
Harvie said that under those proposals, most Scots would be better off and there would be more money for public services.
“Public services are suffering and wages are stagnating, so we need to use our income tax powers to bring more money into the system while also helping people on low incomes keep more of what they earn,” he said.
“Green proposals would ensure that we get that extra revenue for services such as schools and social care, while we would also make most Scots better off.”
Harvie added that it was vital ministers didn’t just “tweak” the existing system but created new rates and bands.
Last month, former SNP local government minister Marco Biagi backed “the kernel” of the Greens’ plan as he warned against a rise in the basic rate of income tax, saying it would hit low earners.
Green MSPs gave their support to the 2017/18 budget after ministers agreed to cancel a proposed income tax cut for high earners and to reverse proposed cuts of £160m to local council services.
The Scottish Greens report published today said the current system is unfair, as someone earning £11,501 and another person earning £43,000 are taxed at the same rate.
Their proposal would reduce income tax for those earning less than the average wage of £26,500 per year.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here