How to eliminate deficits

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landscape2014
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Adopt a flat transaction tax?
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Just my opinion
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America's deficit is 22Tn and the last three presidents have come to power promising to reduce the deficit but ended up doubling it while in their time in office.

Our is over 4Tn

How does your flat transaction tax work and eliminate these deficits.
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landscape2014
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In the financial year 2018/19 the GNP of the UK was £2.85 Trillion, the debt was £1.84 Trillion and the deficit was £0.0255 Trillion (OBR figures). All individuals, multinationals and corporate finance’s transactions in the British economy amount to about £250 Trillion p.a. (BoE figures). They could pay the UK’s total annual tax bill (£800 Billion) with a flat transaction tax of 0.32% (each party to the transaction paying 0.16% tax on the value of the transaction), the treasury would receive 0.32% per transaction (use of cash or dealing with financial entities outside UK jurisdiction would result in the UK domiciled financial entity paying 0.32% tax on the transaction). The total earnings of British people is about £1 Trillion most of which is spent in the economy after an average of about 40% of that sum is collected in direct and indirect taxation (£400 billion) to fund government bureaucracy the services and the subsidies and benefits provided by it. The remaining £400 Billion is met by taxation on rich individuals, multinationals and corporate finance, their average individual effective tax rate is 0.08% per transaction (0.16% tax per transaction) many pay less or nothing. Additionally £25.5 Billion was borrowed from the financial sector (the government borrowing its own national currency?). The population’s proportional contribution to the tax take (40% of its use of GBP - its disposable income) is roughly the same as that of a private sector (0.16% of its use of GBP). As long as the white/blue collar workers remain satisfied with the present tax arrangements they will continue to milked and bled for the benefit of artificial personalities (corporate entities) and the 1% that own them. A flat transaction tax of 0.16% on everyone would eliminate the need for any other taxation (Council tax could be retained by the LA’s and the imposition consumption charges on the sentient population would continue to have relevance to discourage deleterious consumption). The level of transaction tax would allow the treasury to balance receipts through minuscule alterations which would net large sums of money (that could be used to manage the debt) and relieve the population of an unjust, inefficient and onerous (on real people) tax system.
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landscape2014
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For a century economists from John Maynard Keynes to James Tobin have suggested that a transaction tax would be the fairest way for capitalism to provide for government expenditure. A transaction tax of 0.16% on both sides of every transaction would net the treasury £800 billion per year, there would be no need of any other taxation. Why then isn't a transaction tax adopted? One reason is the tens of thousands of government employees who would become redundant. The other is that the financial and corporate sector would have to pay their proportionate share for use of GBP. The total salary/wage bill for the country is about £1 trillion, people spend most of what is left them after tax. C.£249 trillion is the financial and corporate sectors usage. Presently the working population pay about 50% of the tax bill (those who use c.£1 trillion) the other 50% is paid by the finance sector and corporates (those who use c. £249 trillion) the disproportionate load that the present tax system places on real people as opposed to artificial personalities (corporates) has existed for generations and economists have been aware of it, few want to 'rock the boat' and publicly endorse a proportionate tax system which would shift the burden of taxation to those who presently make disproportionate use of GBP. Decades ago electronic technology made transaction taxation possible, vested interests will fight tooth and nail to prevent it because it would collect tax directly from both accounts at the moment the transfer is approved whether the transfers were domestic or international (it would tax money en-route to or from tax havens immediately the enter key was activated).
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ByEeek
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(Original post by Just my opinion)
America's deficit is 22Tn and the last three presidents have come to power promising to reduce the deficit but ended up doubling it while in their time in office.

Our is over 4Tn

How does your flat transaction tax work and eliminate these deficits.
You are confusing debt with deficit. The current deficit is around £25 billion and is the difference between tax receipts and spending. The deficit is paid for by borrowing and that borrowing is added to the national debt.

National debt is not the same as personal debt. For rrasons others can explain much better, it is not in anyone's interest to pay off the national debt. It is however unsustainable to maintain a deficit.
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Just my opinion
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(Original post by ByEeek)
You are confusing debt with deficit. The current deficit is around £25 billion and is the difference between tax receipts and spending. The deficit is paid for by borrowing and that borrowing is added to the national debt.

National debt is not the same as personal debt. For rrasons others can explain much better, it is not in anyone's interest to pay off the national debt. It is however unsustainable to maintain a deficit.
Sorry ByEeek,. I stand corrected.
I even had it explained to me recently with the half full bath (debt )and the running tap (deficit) analogy so I don't know how I got that wrong.
Cheers
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landscape2014
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National wealth is generated in the economy by the employment of a national unit of account GBP. It is only just that those who engage in the economy (individual or corporate) pay their proportionate contribution to the maintenance of the State that creates economic opportunity for them. The magnitude of their reward depends on their industry, skill, ability and sometimes good fortune but whether a real or artificial personality society cannot ‘balance the books’ whilst carrying ‘free riders’ who have been permitted the privilege of an effective subsidy of £400 Billion from sentient taxpayers; the 'free riding' corporates access the national economy but pay a miniscule proportion of their usage of GBP in tax whilst the working population shoulder a wildly disproportionate burden. Presently the £800 Billion tax bill is split about 50/50 between the working population and corporates, proportionately it should be 0.5/99.5.
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landscape2014
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From the lack of response to my last post can I assume that all the viewers are quite happy to subsidise national and international corporates with a personal tax burden of c. 40% (£400 Billion from usage of £1 Trillion) against theirs of 0.16% (£400 Billion from usage of c. £249 Trillion)?
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