Can anyone tell me the differences between the old 'rates' and council tax. Which system is fairest?

Question

Can anyone tell me the differences between the old 'rates' and council tax. Which system is fairest?

Answer 1

On the old rates system, the only people who paid rates were people who owned their houses. People who rented were exempt. The Rates were a very reasonable amount to pay  and only varied by an increase of about a £1 per annum. My Father would pay about £12 a year on a 3 bed house.

Answer 2

Neither is very fair as neither was linked to ability to pay.

Rates was based largely on a property's size and was paid by the owner regardless of who actually lived there. It was possible to have quite a big house, a very low income and a large rates bill.

Council tax is based on the properties value in a given band. Again it takes no account of who actually lives in a house and what they earn.

A national council income tax was be far fairer than both at it would be directly linked to ability to pay

Answer 3

The old rates were based on the amount of rent for which the property could be let, and was payable by the owner.  Council tax is payable on what the property is worth on a sale, and is payable by the occupier(s).

Council tax is probably fairer than rates in that it is to be paid by the people actually using the facilities that it pays for, though I don't think either system is as fair as a local income tax on residents would be.  And even income tax is sometimes not very fair, since to work at all it has to be based on very rigid rules that can't be flexed to meet special circumstances.

Answer 4

They are essentially the same ..

No system in which a minority are forced to pay for the privileges of the majority is 'fair' (Socialists will claim they are not paying enough, Capitalists that they are paying too much).

Personally I feel that local Taxes should be restricted by Law to essential services that are of proven benefit to local people .. this would prevent that squandering of vast sums on 'politically correct' projects (and stop the awarding of useless grants and contracts for things like 'Nuclear free Zone' signs and the erecting of ornamental 'Town Gates' ..)