First. I think that, if we continue to use income tax as a major form of taxation, everyone should pay the same percentage of their income - a flat taxation system. It's wrong that there are bands of taxation. Yes, there should be a personal allowance under which taxation isn't paid and, I'm sure, that would mean some low earners would pay no tax, but to have bands is anti-competitive and anti-success. It's right that everyone pays the same amount. equal contributions make for a fairer society. taxation shouldn't be about class war and, let's be honest, those on the left who defend high taxation for high earners, and yet call themselves socialists, are fighting a class war and/or have a deep-rooted envy. They don't want fairness, they want to beat the successful with a stick as hard as they can. Very, very wrong.
Yes, a flat taxation would mean tax rates going up for many but I've always strongly argued that we, as a nation, pay far too little tax. We should be pleased to pay our bit. We should be proud to contribute to a fair society.
Seond. I'm actually against income tax because, in its current form, it's easy to avoid through exceptions and exemptions and loopholes. I'd like to see income tax actually phased out over, say, 30 years, and replaced completely by sales taxes.
Sales tax are much better: not only are they harder to avoid and evade, but those who use me pay more - it's greener. Highly polluting things could be taxed at higher rates, greener things could be taxed lower, unhealthy foods taxed higher, healthy foods taxed lower... or not at all.
To change to sales tax is a big step and, with our highly conservative (with both a big and small c) political parties it is unlikely they would ever do anything that forward thinking but it would change the way society sees taxation. Success would no longer be seen as a bad thing that gets taxed higher but greed and excess would be hit by higher taxes. Surely that's a fairer system?
It would mean everyone gets all their salary with no tax or NI deductions. They can then choose exactly what to spend that mo ey on. Isn't that better?
Yes, it needs to be done internationally otherwise one nation becomes hugely expensive to tourists but, at a time when many are looking more loosely at the economy, maybe the time is right for a far more revolutionary approach and one which can lead us into the future far more securely than we can ever imagine under the current system.
