Currently I work in a field not unrelated to benefits and it has got me thinking about possible solution.
First let us state a few facts:
1. Barring massive funding and MSM airplay LPUK is unlikely to get the momentum it needs to win seats and push it's zero income tax policies into law.
2. Currently income tax receipts are now outstripped by the cost of our benefits system.
3. Corporate tax, VAT and all the other forms of sales taxes that are more the product of the deranged minds of exchequers from the last 2 centuries with far too much time on their hands are, whilst regressive, currently more than sufficient income for a government exercising it true reasons for existence; e.g. Provision of some public goods, defence of the realm etc.
4. Libertarians (the majority of) want a situation where we move ultimately to low/no taxation but ultimately to self-determination and responsibility; hence the existence of LPUK as a political body to meet the transition to a libertarian future.
Now let's say for one way of guaranteeing this transition and stopping the elderly, the poor and the feckless from dying in the streets we need to rely on a benefit system gauranteeing some income in ways in which private charity or private insurance cannot: how much income? The Adam Smith institute have set out various figures for taxation and, more importantly a guaranteed tax free income of £12000, currently just under twice the current level. For reasoms that should become clear my tax free income (remember, under a non-LPUK government,) is £15000.
Now my idea; imagine your tax free income as a tradeable commodity redeemable against any type of tax receipt. You could use it yourself and instantly keep £15000 of your income completely tax free; couples could have one stay at home parent or who works part time and they could offset the remaining tax free income against their partners income or the unemployed could trade this with brokers within companies trying to lower their companies corpration tax take (hence a slightly higher rate than the ASI's to account for the difference offered). Combined with a flat tax and a robust National Insurance Scheme so tax receipts are more easily traceable and quantified this would enable the benefits system to be abolished over night; extending it indefinately to all beyond the age of 16 (with tapered tax free incomes up to that age) could mean we could eventually wind down our state pension liabilities over time also.
At a stroke we have abolished welfare, set state pensions in permanent decline, encouraged personal responsibilty, voluntary community and increased the fairness of welfare; and best of all we've removed the need for vastly complicated state intervention and the incentive for favouring lifestyle choices by complex tax breaks/benefits to choice groups a la NuLabour single mums/Glasgow East or Tory yummy mums/Surrey.
What do people think?