No Tax

Overheard this on tv recently after the UK's last Budget. Basically no income tax, inheritance tax, CGT or other. Instead every product or service would be subject to a tax scale. So for example food would get 10%, buying a car would get 20% etc.

Sounds like a good idea, as long as it's thought out properly, problem is though, too many vested interests

I think it would level the field between the rich and poor in the respect that your not taxed on how much hard work you have put in only for the Govt. to take a big bite of it. More that if you want to buy it you pay tax on it.

ok do it then.

but, I want a detailed break down of where the tax goes.

If I pay VED (Vehicle Exercise Duty) or should I say 'road tax' does it go back onto the roads ?
Does it hell.

Originally posted by diddy1234
ok do it then.

but, I want a detailed break down of where the tax goes.

If I pay VED (Vehicle Exercise Duty) or should I say 'road tax' does it go back onto the roads ?
Does it hell.

You'll find out when you get your new annual government statement in the post in the next few weeks. lol Wonder if they'll list in there how much tax money was spent sending out the statement about where your tax money goes?

I am not sure if this is a good idea or not. I actually think this may leave the poorer worse off than direct taxation of wages. Lets face it, they wouldn't even be considering it if they didn't think it would generate them more money.

That's how they do it in Costa Rica. No tax except big sales tax. Works fine.

A transaction tax that is scalable depending on what industry you are in.

For example: Food Industry - 5%, Transport - 15% etc etc.

Scaled rate spending tax would increase bureaucracy and red tape, meaning less revenue for services. Flat rate would be better, more efficient, less waste.

We already pay 20%VAT on every purchase except food and children's clothing so perhaps raise it to 25% and take no income taxes from any private individual but ensure corporate profits pay a substantial percentage to the Treasury for the privilege of conducting business in this country.

Any government not able to provide services to the people and protect national borders on flat rate 20-25% spending tax topped up with corporate taxes, is not fit for purpose.