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January 2005 IS THE COUNCIL TAX FAIR? LIBERAL DEMOCRATS SAY ''AXE THE TAX'' We have had a great response to the Liberal Democrat campaign to ''Axe the Tax''. Huge numbers of people signed our petition to get rid of the unfair council tax and replace it with a system based on ability to pay.The current system penalises pensioners and people on low incomes because they end up paying a high proportion of their income in council tax. A local income tax would, very simply, be based on the ability to pay. Run through the existing Inland Revenue system, it could save hundreds of millions of pounds in administration costs, while ensuring that the typical household pays less. Also, if you think council tax is unfair now, just wait until revaluation starts in the next few months! If the house or flat where you live has increased in value so much that it gets shifted up a band, you could pay anything between 17-22% more for your council tax. If you want to find out more about the Liberal Democrats campaign to axe the council tax and replace it with a fairer local income tax, based on your ability to pay rather than the value of the house you live in, then go to www.axethetax.org to find out how much your household would pay under local income tax. 50% of households would end up paying less and 25% the same. The average household would pay £450 per year less with a local income tax. Council tax rates in Merton are amongst the highest in London - are you getting good value for money?
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