3 thoughts on “Reforming Britain’s Tax System”

  1. Posted 06/01/2017 at 16:01 | Permalink

    Rory Meakin is certainly right to say that the UK needs to simplify and shift taxes to more efficient revenue streams.

    If we view taxation as an equal share that we each own from whatever revenue stream it is sourced, then it can be of no surprise that taxes on the fruits of work, effort and enterprise will reduce wealth producing incentives.

    Most view Income, Capital, Corporation and Value Added Taxes as a necessary evil, but they are not actually in order necessary to fund public services.

    Meakin implies that 100% Land Taxes would be confiscatory, but in fact the opposite is true. The failure to equally share the scarcity value derived from resources supplied for free by nature is confiscatory and fundamental abrogation of property rights. From which stems further injustice, like the need to tax produced factors.

    We could very quickly replace all our bad taxes with a few simple user fees, like LVT, and some other Pigovian taxes. Which would greatly benefit our economy and our society. No to mention cutting out tax code down to a tiny fraction of its current size.

    The only thing that is lacking is the political will to do so.

  2. Posted 15/01/2017 at 15:38 | Permalink

    Congratulations on establishing that taxation and revenue raising needs a complete overhaul, its failure in so many areas:-
    Fairly apportion tax raising from all sectors of society in afair and equitable means
    Raise taxes from environmentally damaging activities and resource use
    Promote economic activity across all sections of society
    Promote empowerment to all social groups through their purchasing power

    You also say that most areas of taxation needs to be overhauled and pick out a carbon tax as the one
    Pigouvian tax that should remain , but really carbon is not the only polluter or damaging agent on the planet , it is the over and misuse of all Natural Resources and indeed I suggest that the whole taxation should be based on this alone with the scrapping of all other taxes as Meakin almost suggests.

    This new Natural Resource Tax ,NRT, whereby all Natural resources are taxed according to the damage their use causes the planets ecosystems from minerals , fossil fuels, land water and air should all come under the same umbrella thereby simplifying the whole process and removing the personal income taxes and making everyone without exception equally responsible for the actual and potential damage of all their purchases of goods and services throughout the whole economic chain of industrial activity.

    This should also be combined with a overhaul of all welfare services from health, pensions and benefits, with the addition of a Universal Basic Income, UBI, which would help fund the services, and make individuals more accountable for their own wellbeing.

    Finally a death tax to prevent excessive transference of wealth from generation to generation which distorts social functions of society. and prevents lockup of monies , rather than recycling funds within the economy and reducing the need for QA and ever higher rates of GDP. Smart growth is needed not greedy growth.

  3. Posted 15/01/2017 at 19:17 | Permalink

    We currently give significant subsidy to pension savings. It would be possible to reduce taxes in capital and subsidies or capital accumulation at the same time resulting is a simpler system.

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