Weststander
Well-known member
What? Have I got this wrong? I looked it up and I am not wrong.
So I assume you think I'm an idiot for objecting to it.
Why?
A flat rate of tax means:
1.The more you earn the more you pay, in exact proportion to what you earn
2. There is no disincentive to earn more
3. If there can be no loopholes (and why not?), everyone must pay it
4. It is inexpensive to opperate
Today the rich pay little or no tax. This is because progressive taxation is inherently unfair so all governments, including lefty ones, allow schemes that let people minimise tax by charity donation, certain types of investments and various other complex weirdness in the business and investment sector. Progressive taxation therefore allows the rich to avoid paying tax
Progressive taxation must also be monitored, checked and managed. Governments invest far too little into this which is why so many people dodge tax. On the other hand we have a massive tax law industry, whereby people are paid to 'do' peoples' tax returns.
This is all feeble needless bollocks. A flat rate of tax with no exceptions would be an absolute wonder in my view, and arguments about fairness are false.
Let me say it again. Ten percent of ten is one. Ten percent of a hundred is ten. The more you earn, the more you pay. Twenty percent of a hundred is twenty, twice as much in percentage terms than ten percent. But ten is more than one. To argue as my brother does that ten per cent of 100 is not more than ten percent of 10 and is therefore 'unfair'and not 'progressive' is absurd. Whenever was ten not more than one? Whenever was penalising people for earning more 'fair'.
'Progressive' taxation, I suspect, is one of those deliberately counterintuitive jargon terms so beloved of political twisters. Ministry of truth. Orwellian.
I couldn't agree more, about having a single (it would be higher) rate of income tax. At the same time to do away with employees national insurance. The record of payments for accruing state pension etc, would be replaced by a record of income tax paid.
This would hugely simplifiy the UK tax system, which stretches to several volumninous texts. Saving great cost in collection.
It would also remove all the incentives for businessmen to only draw up to the upper level of tax bands, or making legitimate tax planning moves to keep below those thresholds such as paying large pension premiums.
Separately, all talk in this thread of increasing amounts of unpaid tax through useless HMRC, tax fraud and evasion is factually incorrect. HMRC in recent years have been raising multi £B of additional tax take by tackling non payment, fraud/evasion and dubious tax avoidance schemes. The figures are published. They've had so much success that many rich individuals and their advisors, plus some anti HMRC posters on NSC, have cried foul about Governments/HMRC being too heavy handed.