ABSTRACT
Like the Liberals, Britain's Social Democrats (SDP) have been working for many years towards a scheme that would integrate personal taxation and cash benefits. The SDP have published three policy documents on the reform of tax and social security. All are transitional schemes, designed to be implemented within the life of a Parliament, and none sets out the target system. The SDP were always reluctant to accept Liberal tax credit policy, because of its 44 percent tax rate. The SDP policy-makers are on the side of those who regard wives and children as optional extras, whereas the Liberals, and other advocates of Balance Income, look upon them as equal citizens. The SDP propose four main changes to personal taxation: first the amalgamation of income tax with employees' National Insurance contributions. Second the replacement of tax allowances by fixed amount non-convertible tax credits, third the introduction of independent taxation of husband and wife, and fourth the taxation of child benefit.
