5 Tax changes - an idea?

One fixed percentage of all income seems the fairest. Higher earners may pay more in actual money but are still only being inconvenienced at the same rate as the lower earners, yet are reaping rewards for their work by a better standard of living than others, and inclusion in our society. However, there’s no reason why those at the lower end of the pay scale shouldn’t be inconvenienced to the same extent; they will also be benefiting from society and it gives a feeling of inclusion and shared responsibility, of ‘doing my part’. So it’s fair.

Let’s spell this out. I mean every individual, company, institution, charity etc pays a specified percentage of income from whatever source. No exceptions whatsoever.

What are the benefits of one tax only? ...how long have you got?!

First and foremost is that whole fairness issue. It’s fair, and we know everyone else is in the same boat, so we can see it’s fair. It’s simple…if you earn it, you pay it. If there’s not enough money in the pot, the percentage is adjusted up accordingly, and if - dare I say it? - there’s too much, the percentage can go down! .

No teams of accountants/lawyers/politicians sitting down – and being paid - to work out the pros and cons of increasing/decreasing various sources and the possible side-effects. No complicated Budgets that have to be explained and then complained about/apologised for when they turn out to have an unreasonable burden on a particular section, or sections, of society.

Whole departments in the Tax Office can be dispensed with. There would little need for most of these people to lose their jobs in the short term. They could be re-trained in administrative roles and transferred to immigration. By the time they’ve reduced the lists there should have been enough natural wastage not to cause too many redundancies. In the long run the cost of their salaries and pensions would be vastly reduced and we would lose the cost of the buildings etc, relieving the tax burden on society even further.

Businesses wouldn’t have to employ large numbers of people to interpret and implement the Tax Laws. The self-employed wouldn’t have to pay Accountants to work out their tax liability. The employed wouldn’t feel frustrated at having to pay full whack for e.g. a wardrobe, that a self-employed person can get tax relief on by asking the sales-assistant to describe it as a ‘cabinet’ on the invoice! Everyone would spend less energy looking for ways to reduce how much tax they pay and spend more time and money investing in their business and resources.

As businesses invest and grow, they will expand and employ more people, who can afford to buy whatever society produces and the country prospers. Likewise, new businesses can concentrate on getting off the ground instead of paperwork.

The ordinary Joe-on-the-Street has tax deducted from his wages by his employer before he even gets the money in his hand. He then has to live on what’s left, providing food, shelter, heating, caring for dependents etc. Companies and the self-employed can deduct their raw materials (food), premises (shelter), heating, paying employees (dependents) from their income before they are taxed! Why can’t Joe pay for his living expenses before he has to start paying tax? No…it still leaves the whole question of what is a valid tax deduction and what isn’t. Surely it’s better for companies and the self-employed and the employed to pay their taxes based on their income?

It also seems to me that the simpler a system is the harder it must be to find loopholes or ‘work’ (‘fiddle’?) the system.

Why should any one section of society be exempt from paying tax? For example, charities and religious bodies can be tax free. What a can of worms! Firstly there’s the question of what is a ‘valid’ charity or religion? I’m sure there are lots of different views on this! Then there’s the question of who’s going to make up the shortfall? If a charity invests money in a savings account, that money is effectively taken out of the economy for taxation purposes. Those who don’t agree that a particular cause is worthy, end up having to contribute by default because more tax has to be paid by everyone else to make up for that cause’s tax-relief benefits.

Society’s infrastructure has to be paid for regardless of who pays. If one section doesn’t pay then everyone else has to make up the shortfall. How is that fair?

Taxes are to cover transport, communication, education, defence and so on. Whether we are old, or young, married or single, a private individual or a business, charity or church, we all benefit from these things and no one person or organisation should be exempt.

Is one tax for all Impossible? Is it Impractical? Maybe! But let’s explore it as a starting point and build up a workable solution.