The UK has a labyrinthine tax system. Much of the responsibility for this lies with the last Labour government, which burdened British citizens and businesses with over 5,000 pages of new tax rules and regulations. The result; our Tax Code has more than doubled in size since 1997, recently surpassing India’s to become the largest in the world.
This has allowed the growth of an entire industry to discover tax loopholes. The TUC claims tax avoidance costs the Treasury £13 billion per year in lost tax from individuals, and £12 billion per year in unpaid tax from businesses. This dwarfs the estimated £1 billion a year lost as a result of benefit fraud.
With the Coalition Government forced to make tough choices about public spending in order to reduce the deficit, we need to consider not just what the government spends money on, but also how the government raises taxes in the first place. If we really want a simpler tax system, we should implement a flat tax for both individuals and businesses.
This is how it would work. Read the rest of this entry »
It is pleasing to see such busy shops during the Christmas sales. Our recovery will be driven by a freer financial environment.
The wealth of virtually every developed society in history has depended on a free interaction between market supply and public demand. It is amazing, therefore, to see this basic balance ignored by educated politicians whose egos and ideology stand in the way of progress. Read the rest of this entry »