Simpliying Taxation

Discussion in 'Current Affairs, News and Analysis' started by zippy483, May 13, 2010.

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  1. There has been much talk of simplifying the tax system, and this lead to a debate at work.

    So can we replace every tax we have with a flat rate of income tax, and if so what would that rate concievably be??

    Would you pay let say 50% tax if there was no VAT or fuel duty or beer duty etc

    Fuel at 60p/litre
    Beer at £1:50 /pint
    every thing you buy cheaper.

    Benefits to include the reduction in the tax collecting and administering depts of government.

    Reducing the Welfare bill in line with the new cost of living. (i'd leave pensions alone).

    Possibly a disinsentive to Benefit migrants to come here for handouts (lower levels of disposable cash)

    Any thoughts??
  2. More to life than getting in the car to go to the Pub/Offie/Tescos for 'white Lightning' or if your a 'Jock' Buckfast...
  3. It makes a good idea. It's a frequent complaint that the Tax Code is so complex not even the Tax Office staff understand it !
  4. And your point is?
  5. Mean't to be humerous(see what I did there.. 8) ) but obviously wasted on you..!!
  6. If there was a high rate of income tax to subsidise VAT and various duties, those on benefits will have more to spend on booze and fags.
    I agree with simplifying taxes but I don't think thats the right way to do it.
  7. A few of the Eastern European Countries have gone to Flat rate tax codes with seemingly improved revenue.

    Russia's tax take shot up by 25% for 2 years running with a 15% increase in the 3rd year. goes through the ins and outs.

    It would appear that, once you've thrashed out what you pay tax on , Admin costs fall by a fair amount whilst collection goes up.
  8. Why do we worry about the effect of tax on keeping benefit claimants in booze and fags?

    It all depends what behaviours you want to encourage. If you want a nation of people who want to work, raise families and save sensibly:

    High tax threshold, retain tax breaks for marriage/children and low taxation of savings/pension/investments.

    Of course we all know this then encourages pay in options in order to avoid tax. However you set it up, there are people who have enough nous to find a way around it. And if they can't, they'll go elsewhere.

    Edited for mongness
  9. This is such a simplification of the truth it beggars belief. It is reminiscent of a child saying "babies come from mummy's tummy". Partly correct, but it misses all the fcuking about involved.
  10. No, no, no.

    EVERYBODY knows that people only avoid tax because the rate is too high. If the tax rate was low everybody would happily pay it without complaint.

  11. Because taxpayers will be paying taxes for their benefits as normal but now will also be paying higher taxes so those that don't work can buy even more booze and fags.
  12. Baz - I share your cynicism.

    Edited for relevance
  13. Get rid of Road Tax and put it on the price of petrol/diesel, the more you drive the more you pay
  14. Stacker1 - we're talking at cross purposes. I agree with you. It was my frustration on the frequent line that VAT rises should be avoided as it disproportionately affects the low-income population. With the notable exception of fuel (for most of us), it's either a luxury or it isn't. If you can't afford it, don't buy it.
  15. I can buy into this.

    Between us, me and the missus have 4 cars and 4 motorbikes.