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How would you change the UK tax system?

How would you change the UK tax system?

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Reply 1
Flat tax.
Lower VAT.

Get more people spending.
Get rid of VAT
60% tax on anyone earning 1m +
Close all loop holes
Go after corporations like a boss
Tax alcohol & cigs to the MAX!

then wait for the revolution
In order to raise further tax funds, I would propose further taxes to be imposed upon the poor, that is to say, we should institute a regressive taxation system. Increasing taxes on rich people will only result in their flight from the country and acquiring residency in a tax haven. Any tax money raised from the rich, no matter how small is beneficial for the nation. We are better having the rich paying a small sum of tax than no taxes whatsoever. The poor however lack the flexibility of the rich and are less able to avoid paying taxes through legal methods such as using loop holes through clever accounting and moving country. Therefore we could reap a far greater sum of taxation by milking the poor than increasing taxes on the rich.
Original post by The Contrarian
In order to raise further tax funds, I would propose further taxes to be imposed upon the poor, that is to say, we should institute a regressive taxation system. Increasing taxes on rich people will only result in their flight from the country and acquiring residency in a tax haven. Any tax money raised from the rich, no matter how small is beneficial for the nation. We are better having the rich paying a small sum of tax than no taxes whatsoever. The poor however lack the flexibility of the rich and are less able to avoid paying taxes through legal methods such as using loop holes through clever accounting and moving country. Therefore we could reap a far greater sum of taxation by milking the poor than increasing taxes on the rich.


sounds like a plan dr evil
Reply 5
Original post by Joeman560
Flat tax.
Lower VAT.

Get more people spending.


Great idea, debt fuelled inflation wasted on imports, leading to trade balance catastrophe.
Original post by Bill_Gates
sounds like a plan dr evil


A system of taxation is in place ultimately to raise funds for the government. All I am proposing is the most efficient method in which to achieve that goal. If the goal is to raise maximal funds to suppose the government, then a regressive taxation system is the answer.

The government provides many necessary services such as education, health, welfare etc... Many people rely on such services. Is promoting the most effective way to support such services evil? Is there something inherently evil about wanting to increase funds so as to support the NHS and prevent any further closures?
assuming we had no more debt/debt interest:

flat rate of tax, 10%
OR, abolish the income tax and replace it with a national VAT
either one or the other

also, I'd turn council tax into a (very low) percentage of earnings, opposed to a fixed rate depending on the value of your property

and no more death (inheritance) tax
(edited 10 years ago)
Reply 8
People earning the average wage (currently 24,000 outside London) should not pay more than a fifth of their in Income in tax.
Taxes should be lower in London, how are graduates with out rich parents suppose to be socially mobile if they cant afford to take jobs in London
Reply 9
Original post by captain.sensible
assuming we had no more debt/debt interest:

flat rate of tax, 10%
OR, abolish the income tax and replace it with a national VAT
either one or the other

also, I'd turn council tax into a (very low) percentage of earnings, opposed to a fixed rate depending on the value of your property

and no more death (inheritance) tax


Do you know how much VAT would have to rise to make up for lost Income tax ? also VAT sales are unstable.
You would turn a council tax which is a wealth tax into a income tax ? Income taxes are more unstable than wealth taxes and economists generally prefer wealth taxes over income taxes, as income tax is easy for rich people to evade
Original post by James222
People earning the average wage (currently 24,000 outside London) should not pay more than a fifth of their in Income in tax.
Taxes should be lower in London, how are graduates with out rich parents suppose to be socially mobile if they cant afford to take jobs in London


but why would you take a job in the most expensive city in the UK and arguably in the whole of europe if you can't afford to live there? how is that playing it safe? there's a reason it costs so much to live there - because people who live there are normally richer and can afford the higher costs
Reply 11
I would abolish NI, replace it with an LVT for property over a certain threshold area and value. One form of income tax is more than enough, thank you.

And get rid of all stepped rises across all forms of taxation and replace with a smooth curve. This really should be such a nobrainer that its incomprehensible that it wasn't done 20 years ago.

Capital gains tax also needs changing so that there are no comparative tax shields for highlly leveraged firms. Interest payments should be made non tax deductable. The current situation is just ****ing dumb, it incentivises firms to take onunnecessarily high risks of insolvency.
The tax system performs three completely different functions all of which have become hopelessly muddled. First the state raises funds for its own expenditure. Secondly the tax system is fundamentally redistributive ie socialist in nature. Thirdly levels of taxation are thought to effect the performance of the economy as a whole - fiscal measures.

To my mind it seems nonsense that millions of people pay tax but then receive benefits. It is a ridiculously inefficient and often unfair way of taxing people because of the frictional transaction costs, fraud, bureaucracy, means testing, allowances and disregards etc and so forth. There is a case for completely merging the two systems and simply applying variable tax rates on an individual basis and then cutting the corresponding benefits.
Original post by James222
Do you know how much VAT would have to rise to make up for lost Income tax ? also VAT sales are unstable.
You would turn a council tax which is a wealth tax into a income tax ? Income taxes are more unstable than wealth taxes and economists generally prefer wealth taxes over income taxes, as income tax is easy for rich people to evade


I'd have very low spending if I were in charge, e.g. I'd deregulate most publicly owned institutions, e.g. the department of education, the department for health, the department for culture, the department for agriculture, social housing, pensions, etc, so VAT wouldn't need to be too much for it to replace an income tax seeing as so much would be saved through lower taxes. and in terms of local council funding, I still disagree with the ethics of having a person who happens to have a large house but happens to earn little being made to pay a lot of money simply because of what he inherited or received from something like the lottery (e.g. not from direct work)
I'd take a leaf from Osbourne's book and slap a ludicrously high tax rate on absolutely everyone (seriously, like 90%+) so people realise that government can't be trusted to be anything but self interested and that the country would be better off not bothering with it.

Spoiler

(edited 10 years ago)
Reply 15
Original post by captain.sensible
but why would you take a job in the most expensive city in the UK and arguably in the whole of europe if you can't afford to live there? how is that playing it safe? there's a reason it costs so much to live there - because people who live there are normally richer and can afford the higher costs


50% of all graduate jobs are in London.

Its where all the graduate jobs are and many of the high paying middle class jobs(although the trainee salary is quite low) ie trainee barristers get something like 12,000-20,000 a year. However do that for 4-5 years and you can comfortable join the middle class and earn over £40,000. If however you have no resources you will turn down that job and accept a job in another part of the country that pays £18,000 with little chance of earning over £30,000
Reply 16
Original post by captain.sensible
I'd have very low spending if I were in charge, e.g. I'd deregulate most publicly owned institutions, e.g. the department of education, the department for health, the department for culture, the department for agriculture, social housing, pensions, etc, so VAT wouldn't need to be too much for it to replace an income tax seeing as so much would be saved through lower taxes. and in terms of local council funding, I still disagree with the ethics of having a person who happens to have a large house but happens to earn little being made to pay a lot of money simply because of what he inherited or received from something like the lottery (e.g. not from direct work)



By deregulate you mean cut ?
Income Tax is about 152 billion so you have to cut about 20% of all spending
National Insurance is about 100 billion, a further 10% cut

Countries like Norway and Holland have wealth taxes on all assets and I think generally they are a good way to tackle inequality in society. So much of income is hard to follow and gets disguised as all sorts. I sympathise with people who inherited a large house, but at there are many things you can do to reduce your inheritance tax, the main people who pay wealth taxes are the wealthy.
(edited 10 years ago)
Original post by James222
50% of all graduate jobs are in London.

Its where all the graduate jobs are and many of the high paying middle class jobs(although the trainee salary is quite low) ie trainee barristers get something like 12,000-20,000 a year. However do that for 4-5 years and you can comfortable join the middle class and earn over £40,000. If however you have no resources you will turn down that job and accept a job in another part of the country that pays £18,000 with little chance of earning over £30,000


but what's wrong with that? there are advantages to working in small and less hustle/bustle areas of the country - obviously people who are willing to stick it out in crowded areas like london will get rewarded for that with a higher wage, and for those that like things more peaceful and cheaper areas then that peacefulness/cheaper cost of living will be its own reward, surely?
Crack down on tax dodging corporations. Our infrastructure and public services allow these greedy bastards to make their millions so they should damn well pay in like everybody else, and a darn sight more at that. Parasites.
Original post by James222
By deregulate you mean cut ?
Income Tax is about 152 billion so you have to cut about 20% of all spending
National Insurance is about 100 billion, a further 10% cut

Countries like Norway and Holland have wealth taxes on all assets and I think generally they are a good way to tackle inequality in society. So much of income is hard to follow and gets disguised as all sorts. I sympathise with people who inherited a large house, but at there are many things you can do to reduce your inheritance tax, the main people who pay wealth taxes are the wealthy.


yeah - I mean I'd cut most things and leave the bare state essentials, e.g. defence, the parliament, courts, the police department, the civil service, etc. welfare would basically not exist in this hypothetical society and help would be based on the willingness of family/friends helping each other out. and to put that into perspective: about 30% of the national budget is social security, so all of that would be gone, next would be health at about 20% and education at 15%, so that already a majority of the money spent gone, and there are a lot of other things that could be mostly cut e.g. the housing and environmental costs. but although I would cut those things, it is technically possible to have both publicly funded education and health care with an 11% flat rate as seen in russia, but it wouldn't be great.

and I'm not concerned with reducing inequality I'm more concerned about people's individual freedoms, but that doesn't mean I don't care about things like legal equality and the right of all people to take their court cases forward regardless of money (assuming it's not an unreasonable case being advanced)

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