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    The benefit of a simple flat rate tax system with a high tax free threshold is that it

    a) eliminates all loopholes and therefore prevents the whole issue of legal avoidance
    b) treats all income the same irrespective of source therefore bringing a greater range of wealth into scope
    c) is at a low enough rate that it will not encourage any form of capital flight
    d) if corporation tax is set at the same level it will act as an incentive for inwards investment and therefore job creation
    e) most importantly means those earning £9.60 per hour or less pay no tax on their income

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