Tax
This is something I’ve been pondering for a while.
What if we threw out of all of the existing [personal] taxes, allowances, credits, and bands, and replaced them with a aflat 35% income tax?
Administration costs would be lower, evasion would be much harder, and everyone would be taxed to the same level (with the actual amount based solely upon what they earn). Some adjustment to the minimum wage would be required to compensate for the loss of the tax-free allowance, and there’d obviously be inflationary concerns (you’d really want to adjust to it over a period of a few years, rather than having a cut-off date).
I can’t help but think that the state would end up with slightly higher (inflation-adjusted) tax revenues in total, considerably lower operational costs, and individuals would be taxed more fairly and sanely.
I’d be interested to see if anybody’s actually run the numbers and modelled this.
