Council Tax - Criticism

Criticism

Council Tax is criticised for perceived unfairness in not taking into account the ability to pay (see regressive taxation). These critics point out that while the capital value of the property in which a person lives might give some indication of the relative wealth of the individual, it does not necessarily relate to current income. Council-tax advocates respond that those on low incomes can apply for council tax benefits which can significantly (or totally) reduce the amount the applicant pays. This argument presumes, of course, that the system of council tax benefit is itself a satisfactory scheme. In particular, not everyone who is eligible to benefit will make a claim.

Critics also claim that Council Tax has a disproportionate impact on renters, or those occupying part-owned social housing. They are paying tax according to the value of a property that they may not have been able to afford to buy or even rent at market rate.

Equally, the tax isn't actually particularly proportionate even to property values. A band H property will pay at most three times as a band A, even though the value of the property may be ten or more times higher.

Whilst the tax may have regressive characteristics, supporters point out that there is a significant means tested benefit regime in place which offers rebates to those on low incomes. This has the effect of making the tax less regressive. Furthermore, in comparison to its predecessor - the Community Charge - council tax is straightforward to collect with in year collection rates averaging 97% in England.

Read more about this topic:  Council Tax

Famous quotes containing the word criticism:

    The critic lives at second hand. He writes about. The poem, the novel, or the play must be given to him; criticism exists by the grace of other men’s genius. By virtue of style, criticism can itself become literature. But usually this occurs only when the writer is acting as critic of his own work or as outrider to his own poetics, when the criticism of Coleridge is work in progress or that of T.S. Eliot propaganda.
    George Steiner (b. 1929)

    In criticism I will be bold, and as sternly, absolutely just with friend and foe. From this purpose nothing shall turn me.
    Edgar Allan Poe (1809–1845)

    However intense my experience, I am conscious of the presence and criticism of a part of me, which, as it were, is not a part of me, but a spectator, sharing no experience, but taking note of it, and that is no more I than it is you. When the play, it may be the tragedy, of life is over, the spectator goes his way. It was a kind of fiction, a work of the imagination only, so far as he was concerned.
    Henry David Thoreau (1817–1862)