An interesting article I wrote on the reality of the current system.

I have compiled an article(most compassionate one to date) about the ideal vision for our revised system. Click here http://www.assupportgrouponline.org/system

Please check it out.

Emma

Parents
  • One possibility is a complete reform of the tax system away from income tax onto taxation of things like corporate profits, land value, and financial transactions.


    Wealth taxes are inherently bad in the long run, they encourage spending and discourage responsibly planning for one's future because it's eaten into by the wealth taxes. The concept of financial transaction (Tobin Tax) has been discredited so many times it's not even worth mentioning, the damage it would do to the banking system (no industry, but system) is immense, it also encourages the black market which is untaxed and untaxable. Corporate profits are already taxed, that income then goes to private individuals who are taxed on in again as income, as in my previous example the company I own pays corporation tax, only after that can I take the profit as dividend, where I pay tax on it again in the form of income tax, That already has a tax rate from company profit to my bank account of 52%.

    I believe that scrapping income tax, or at least having a high tax free allowance of say £40,000, will remove this us vs them attitude between people who work and people who don't work.

    Having a £40k or similar high-ish allowance would exaggerate the us vs them even more and would move the point where people are net contributors to probably less than 15%. Allowing people to not pay any tax is a bad thing, it give the impression of "free" and people think free has no cost and often no value. If everyone has contributed then everyone feels a sense of ownership and so cares about things far more.

    If you really want to remove us vs them then the best solution would be a flat tax, where everyone regardless of earnings was charged at the same rate for every pound they earned, probably around 30%.

    The sensible option, at least for the moment would be to step roughly in line with the European averages, a tax free allowance of £2-5,000 pa, with a basic rate around 20%, intermediate rates of 35% (from £50-150k)and a top rate of 50% (£150k+). There would also be the need to move to a more contribution based welfare system, for instance in Germany if you lose your job your unemployment benefit is paid at around 60% of your previous income (tax free) for up to a year, then reducing on a sliding scale after that, based on having made enough contributions.

    Corporation tax could be a bit higher, but only if it was tied with more support for business, both in ease of legislatiave process and also infrastructure. 

Reply
  • One possibility is a complete reform of the tax system away from income tax onto taxation of things like corporate profits, land value, and financial transactions.


    Wealth taxes are inherently bad in the long run, they encourage spending and discourage responsibly planning for one's future because it's eaten into by the wealth taxes. The concept of financial transaction (Tobin Tax) has been discredited so many times it's not even worth mentioning, the damage it would do to the banking system (no industry, but system) is immense, it also encourages the black market which is untaxed and untaxable. Corporate profits are already taxed, that income then goes to private individuals who are taxed on in again as income, as in my previous example the company I own pays corporation tax, only after that can I take the profit as dividend, where I pay tax on it again in the form of income tax, That already has a tax rate from company profit to my bank account of 52%.

    I believe that scrapping income tax, or at least having a high tax free allowance of say £40,000, will remove this us vs them attitude between people who work and people who don't work.

    Having a £40k or similar high-ish allowance would exaggerate the us vs them even more and would move the point where people are net contributors to probably less than 15%. Allowing people to not pay any tax is a bad thing, it give the impression of "free" and people think free has no cost and often no value. If everyone has contributed then everyone feels a sense of ownership and so cares about things far more.

    If you really want to remove us vs them then the best solution would be a flat tax, where everyone regardless of earnings was charged at the same rate for every pound they earned, probably around 30%.

    The sensible option, at least for the moment would be to step roughly in line with the European averages, a tax free allowance of £2-5,000 pa, with a basic rate around 20%, intermediate rates of 35% (from £50-150k)and a top rate of 50% (£150k+). There would also be the need to move to a more contribution based welfare system, for instance in Germany if you lose your job your unemployment benefit is paid at around 60% of your previous income (tax free) for up to a year, then reducing on a sliding scale after that, based on having made enough contributions.

    Corporation tax could be a bit higher, but only if it was tied with more support for business, both in ease of legislatiave process and also infrastructure. 

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