Oh right, I stand corrected then !
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Of course it's complex. I doubt there's a perfect solution.
Remember though that over 60% of the council's budget comes from central government, not from council tax.
I've no idea of the percentage breakdown between the cost of basic services vs the costs of legals, planning etc, but I imagine more than the remaining 40%, council tax funded, are fundamental front line services.
That being the case, and if we agree we should all pay the same cost for a service, council tax should not be income based, because you've already paid for 'the extras' through general taxation.