He said the current yield of income tax could be preserved with a flat rate of 30% and a personal allowance of £10,000.
Average yields on money market funds plunged to their lowest levels ever last week, with yields on tax-free funds dropping below 1percentt, but investors have been pouring money in anyway, according to iMoneyNet Inc. of Westborough, Mass.
Prying the game out of the dark recesses of the Web could yield many billions of tax dollars for public coffers, these people say.
For an investor in the 28percenttaxax bracket, that means an after-tax yield of 3.43percentt, making the tax-free munis more attractive.
The BBC's business editor Robert Peston says this shows the tax avoidance which HM Revenue and Customs says greatly reduced the yield of the 50p tax rate was carried out by a tiny minority of top earners.
The remaining yield of the profits tax and share levy would be set aside as a reserve to boost the pensions paid by the second state pension.
For Lehmann, the appeal of the Constellation preferred issue is twofold: the high yield of 4.46%, taxed at only 15%, plus the conversion feature, which produces 0.7319 shares of common stock.
Later, one could buy back his own stock with a price-to-earnings ratio of 15 and an earnings yield of 6.7% after taxes, and pick up the 3% spread as free money that makes his own earnings-per-share go up.
Second, tying spending on vital services to the yields of particular taxes may make those services dependent on the business cycle.
A barrel of oil priced at $70 would yield a tax of $4.20 if a full 6% tax were applied; on the other hand, if the first $10 is untaxed, and the value from $10 to $25 is taxed at 1.5%, and so on up the scale, the final proceeds would be just $2.17.The voters will doubtless not bother with such arithmetic.
That 5.62percentt yield would translate to an after-tax yield of 7.80percentt for an investor in the 28percenttaxax bracket.
