Thursday, April 24, 2008

English Tax Reforms

We have discussed briefly how a devolved parliament in England could work with counties, but what about our tax raising powers?

Tax is of course something an independent or devolved parliament should seek to take control of from the British state immediately. Our first task should be a complete revision of the tax system on a scale not seen in the past century.

Our first task would be the abolition of the Income Tax and Corporate Tax. I can already see the socialists wringing their hands and crying "think of the children". We actually I am...

By scrapping our Income Tax and Corporate Tax we would see a massive boost in our economy. Detailing every benefit and how it works is out of scope of this article, but I intend to provide you to some links so you can read up on it more if you are interested.

So yes we would be removing the Income Tax meaning all persons employed in England would receive wages at the end of each month without the government having grabbed a big chunk of it. You are probably wondering how we could afford to do this? Well we would increase the tax on products sold. Essentially VAT would be scrapped and a tax of around 22% placed upon products being sold new. The Inland Revenue would then only have the task of collecting Sales Tax from those who have sold new products. Surely the administrative task of this compared to our current system will save millions in tax payers money alone.
Combined with scrapping Corporate Tax we will not only encourage businesses to invest as well as stimulate entrepreneurs we will save these people millions in administration.
If anyone thinks a company can be taxed itself you are wrong. Any tax raises against a company are paid for either by:

1.) The consumer through price rises (so essentially you are paying the tax hike).
2.) The employee's through loss of jobs or benefits and pay (so essentially they are paying the tax hike).
3.) The share holders through loss of dividends (so essentially pension plans etc. are paying the tax hike).

When you read about socialists taxing companies they aren't, they are taxing you and me and your neighbours. They are stifling growth and stagnating the market. They are also pushing the richer members of societies as well as companies into storing their wealth off shore in places like the Isle of Mann, Jersey, Switzerland etc.
Can you imagine the benefit of having these companies move their headquarter back to England? Can you imagine the difference of having billions pumped back into the economy as companies move their finances back to England?
Can you imagine the investment we could look at pumping into somewhere like Birmingham and creating a SECOND financial centre in England?
Forget the Scots whinging over North Sea Oil, they can keep the lot, it's a finite resource and no doubt the socialists up there will tax it to death.

So is it possible that a 22% sales tax could replace Income and Corporate Tax and still provide the services we need such as a roads, health etc? Yes it is.
There would have to be massive reform of our social services, benefits system, QUANGOs at the same time. This will be painful to the lazy who think benefit fraud is a way of life, the faux charities leeching of the public, but it will be a blessing to the disabled and ill who want to get out there and live their life like any other Englishman. The money diverted away from the QUANGOs and parasites the Labour government have spawned could be pumped into health care.
We wouldn't even need to replace our NHS with a broken system like the US private health care mess.

This system of taxation would require a lot of research before hand, economic models to be built, and any potential pitfalls investigated before, but the question is... why aren't we doing that?

If you are interested in how, why and when we should implement this system then I recommend you read the following links. I'll also point out we are better off doing it sooner rather then later, as somebody else may pip us to it.

Links: - Fair Tax (US) - A guide to the US proposed system - Flat rate income tax proposed for UK. - LPUK guide to income tax.

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