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Challenge the Chancellor Competition2005/6 Winners of the GCSE/GNVQ Competition
The 2005/6 GCSE/GNVQ competition was won by Sale Grammar School. They are pictured here with Dawn Primarolo, Paymaster General. The team members were:
Dear Mr Brown We are the Mytton family and we are writing to you about the proposed changes to the tax system. My family and I have come to a conclusion on which new tax system we believe you should adopt. We are passionate that the proposed new VAT system is fairer by providing a more dispersed rate of taxation; regardless of income as we feel that peoples' income can be drastically affected by the effort that they contribute to their working lives. Instead, it is affected by the luxuries they choose to indulge in with their disposable income that is becoming increasingly vital. The single rate of VAT for the majority of goods makes it easy to work out expenditure and the exceptions to VAT are those that are essential to maintain a healthy lifestyle, without compromising the encouragement of a positive work ethic within the social hierarchy. Therefore there is a greater possibility of reducing the number of citizens whom are unemployed, or unable to work that are costing the tax payer and inhibiting Government spending; this problem is the issue of benefit fraud. We feel that by removing this enticement to claim benefits, the whole community will have more capital in which to invest into much needed service improvements. Our food bill is one of the largest proportions of our spending and we feel that by selecting the VAT tax system we would benefit with reduced costs. The average tax that we would be charged on the VAT system is 10.75% which is considerably lower than the other scheme. We as a family do not agree with the income tax system. We believe it is unfair as people are incorrectly penalised for having a higher salary range than other less fortunate families. We have concluded that families should be taxed by the luxuries they buy - not by their income level. The proposed new income tax system would work out. In this income tax proposal we would suffer as our family includes a high earner which would result in us paying a 26% average tax per year. For all of the reasons above we have chosen the VAT taxation proposal as the most suitable for our family and the most reasonable overall for the majority of people. Yours sincerely The Mytton family Note: the Mytton family has in income of £100,000 p.a. of which it saves £47,000 p.a. They don't smoke but they drink moderately. |