In this Institute of Economic Affairs Podcast, Head of Media Reem Ibrahim hosts a discussion with IEA Executive Director Tom Clougherty and Managing Editor Daniel Freeman on the government's upcoming budget and various tax policy proposals currently being floated.
Hi guys. Another great conversation. And again I’d like to comment. I think the Government is grasping at straws. In fact any tax that may bring in extra revenue is a possibility and it’s frightening. And as much as your discussion of their assessment of worthiness is thoughtful, even discussing it as an option is equally as frightening! I mean it’s skin to discussing how many lashes should one get when being whipped! 20 or 100 or is it a big whip or a little whip or should it be leather or razor wire! They are all wrong. Discussing taxes that need not be used is just plain wrong. No matter how many times it’s discussed. Look, let’s get to grips with taxation. Tax us a way first the Government yo be funded to pay all our needs as a modern democratic fair, caring and protective society. It must be equitable. So with that in mind we need tax to be affordable and based on a trigger. Something we all do or have to do. We need it to cover the majority who have to be incentivised to work for and produce for society. It must also cover the costs of pensions and benefits for the disabled and infirm. The unemployed worker and whether we like it or not the unemployable to. There will also be a minority of people who will never get a job because others will be chosen above them. They may be criminals or addicts or just bone idle. But society will need to pay to keep them at home away from the main group who work and include themselves in our social contract of duty to one another. Now I think the ill and disabled should be left to doctors to justify their inability. Too much of government wants to limit their payouts and have made the choosing worse. The cost of chasing and overseeing dies not warrant this. It should stop. Let doctors do their jobs. Pensioners we know are from a pre determined age. And unemployed are normally those who will find a job sooner or later. As for the unemployable, pay them the minimum. But stop trying to tar all with their brush. The main problem is working people aren’t paid enough! There is not a clear defining gap between non work and work. If they get really good pay it shows work really does pay. And I’m all for those of brilliance or hard work or leadership or invention or danger it skills etc., deserve more money. I’m all for proper reward. I’m also for earning as much as you can. That’s the Free market at its best. Autonomous and perpetual. But when it comes to keeping that money, then I do have a problem. Tax revenue has to come from work. Any and all work. Tax must not be about anything other than a fair exchange of work is by monetary exchange of all work and all monies in the same time frame. It’s not in that equation the exchange can be unfair or unwarranted nor can it be construed that money is not for exchange or to allow it to be ‘withheld’ from one another. The system and tax system must work for all by taxing one thing we all must do and it must be fairly taken from that financial exchange. I think that just about covers what a tax should be and what it’s for and why it’s taken. Now the amount needed by government is a calculated by how much it needs to SPEND. And as we all have to meet a deadline of time for our bills and costs then so should we be assured money is received in that same time frame. Otherwise it’s not going to work. So when the government SPENDING is needed we know how much tax is required from the transaction required to trigger a tax take. So it’s a simple need and a supply if that need. Now I have given this much thought. The tax system we have is unfair and unworkable as it doesn’t bring in sufficient tax take. Because you have to know how tax can be triggered and pick the optimum method. I assert it should be based not on earning and spending as it is now but just on SPENDING via vat. But only if everyone SPENDS all their income each month. It’s counterintuitive to think that, I know. But if earnings are much increased, which it will from all that SPENDING then I’m sure it will be fine. Indeed I think people will feel richer happier and easy about the tax they pay. It’s fair and equitable plus, there won’t need to be any other taxes! All that movement snd rotation of money will exponentially produce so much tax take, the coffers of the exchequer will be overflowing. Base tax on SPENDING not on income. Tax is taken and you get nothing in return. No quid pro quo. But money SPENT is a fair exchange for goods or services. It’s unarguable and autonomous and perpetual. It’s simply the best!
Hi guys. Another great conversation. And again I’d like to comment. I think the Government is grasping at straws. In fact any tax that may bring in extra revenue is a possibility and it’s frightening. And as much as your discussion of their assessment of worthiness is thoughtful, even discussing it as an option is equally as frightening! I mean it’s skin to discussing how many lashes should one get when being whipped! 20 or 100 or is it a big whip or a little whip or should it be leather or razor wire! They are all wrong. Discussing taxes that need not be used is just plain wrong. No matter how many times it’s discussed. Look, let’s get to grips with taxation. Tax us a way first the Government yo be funded to pay all our needs as a modern democratic fair, caring and protective society. It must be equitable. So with that in mind we need tax to be affordable and based on a trigger. Something we all do or have to do. We need it to cover the majority who have to be incentivised to work for and produce for society. It must also cover the costs of pensions and benefits for the disabled and infirm. The unemployed worker and whether we like it or not the unemployable to. There will also be a minority of people who will never get a job because others will be chosen above them. They may be criminals or addicts or just bone idle. But society will need to pay to keep them at home away from the main group who work and include themselves in our social contract of duty to one another. Now I think the ill and disabled should be left to doctors to justify their inability. Too much of government wants to limit their payouts and have made the choosing worse. The cost of chasing and overseeing dies not warrant this. It should stop. Let doctors do their jobs. Pensioners we know are from a pre determined age. And unemployed are normally those who will find a job sooner or later. As for the unemployable, pay them the minimum. But stop trying to tar all with their brush. The main problem is working people aren’t paid enough! There is not a clear defining gap between non work and work. If they get really good pay it shows work really does pay. And I’m all for those of brilliance or hard work or leadership or invention or danger it skills etc., deserve more money. I’m all for proper reward. I’m also for earning as much as you can. That’s the Free market at its best. Autonomous and perpetual. But when it comes to keeping that money, then I do have a problem. Tax revenue has to come from work. Any and all work. Tax must not be about anything other than a fair exchange of work is by monetary exchange of all work and all monies in the same time frame. It’s not in that equation the exchange can be unfair or unwarranted nor can it be construed that money is not for exchange or to allow it to be ‘withheld’ from one another. The system and tax system must work for all by taxing one thing we all must do and it must be fairly taken from that financial exchange. I think that just about covers what a tax should be and what it’s for and why it’s taken. Now the amount needed by government is a calculated by how much it needs to SPEND. And as we all have to meet a deadline of time for our bills and costs then so should we be assured money is received in that same time frame. Otherwise it’s not going to work. So when the government SPENDING is needed we know how much tax is required from the transaction required to trigger a tax take. So it’s a simple need and a supply if that need. Now I have given this much thought. The tax system we have is unfair and unworkable as it doesn’t bring in sufficient tax take. Because you have to know how tax can be triggered and pick the optimum method. I assert it should be based not on earning and spending as it is now but just on SPENDING via vat. But only if everyone SPENDS all their income each month. It’s counterintuitive to think that, I know. But if earnings are much increased, which it will from all that SPENDING then I’m sure it will be fine. Indeed I think people will feel richer happier and easy about the tax they pay. It’s fair and equitable plus, there won’t need to be any other taxes! All that movement snd rotation of money will exponentially produce so much tax take, the coffers of the exchequer will be overflowing. Base tax on SPENDING not on income. Tax is taken and you get nothing in return. No quid pro quo. But money SPENT is a fair exchange for goods or services. It’s unarguable and autonomous and perpetual. It’s simply the best!