Comments on: Why doesn’t my party support flat tax? http://www.gavpolitics.co.uk/blog/2006/10/04/why-doesnt-my-party-support-flat-tax/ Liberal, Green and Fair Thu, 08 Jul 2010 17:18:32 +0100 http://wordpress.org/?v=2.9.2 hourly 1 By: mark adams http://www.gavpolitics.co.uk/blog/2006/10/04/why-doesnt-my-party-support-flat-tax/#comment-16084 mark adams Fri, 06 Oct 2006 15:32:06 +0000 http://www.gavpolitics.co.uk/blog/2006/10/04/why-doesnt-my-party-support-flat-tax/#comment-16084 Gav, the incidence of a consumption tax is determined by the supply and demand for factor inputs such as labour and capital, not by the point of payment. It is no different than a flat tax levied on incomes and corporate profits (or dividends) at an equal rate - both in fairness and in impact on tourism (which deserves no special treatment). All businesses are already required to register by the state and the cost of compliance is lower with the consumption tax than with a flat income tax. It therefore requires less intrusion and produces lower rates of avoidance. Gav, the incidence of a consumption tax is determined by the supply and demand for factor inputs such as labour and capital, not by the point of payment.

It is no different than a flat tax levied on incomes and corporate profits (or dividends) at an equal rate – both in fairness and in impact on tourism (which deserves no special treatment).

All businesses are already required to register by the state and the cost of compliance is lower with the consumption tax than with a flat income tax. It therefore requires less intrusion and produces lower rates of avoidance.

]]> By: Simon http://www.gavpolitics.co.uk/blog/2006/10/04/why-doesnt-my-party-support-flat-tax/#comment-16057 Simon Fri, 06 Oct 2006 11:51:38 +0000 http://www.gavpolitics.co.uk/blog/2006/10/04/why-doesnt-my-party-support-flat-tax/#comment-16057 Maybe things will change soonish. It would have been to radical to support flat taxes this week. Maybe things will change soonish. It would have been to radical to support flat taxes this week.

]]> By: Gav http://www.gavpolitics.co.uk/blog/2006/10/04/why-doesnt-my-party-support-flat-tax/#comment-16038 Gav Fri, 06 Oct 2006 09:17:44 +0000 http://www.gavpolitics.co.uk/blog/2006/10/04/why-doesnt-my-party-support-flat-tax/#comment-16038 VAT is a tax on spending. That means that it affects those on the lowest incomes more than those on higher incomes. It seems fairer, to me, to tax people on what they earn, not what they have to spend. It also would damage tourism and require a continuation of the aggressive intervention and registration of companies with the state. I would, personally, prefer a tax that was fair on the poor and rich, which could be collected without the risk of avoidance and which did not require intrusion on the part of the government in order to ensure collection. But I don't think it's possible to cover all those requirements... is it? VAT is a tax on spending. That means that it affects those on the lowest incomes more than those on higher incomes. It seems fairer, to me, to tax people on what they earn, not what they have to spend.

It also would damage tourism and require a continuation of the aggressive intervention and registration of companies with the state.

I would, personally, prefer a tax that was fair on the poor and rich, which could be collected without the risk of avoidance and which did not require intrusion on the part of the government in order to ensure collection. But I don’t think it’s possible to cover all those requirements… is it?

]]> By: mark adams http://www.gavpolitics.co.uk/blog/2006/10/04/why-doesnt-my-party-support-flat-tax/#comment-15983 mark adams Thu, 05 Oct 2006 20:45:24 +0000 http://www.gavpolitics.co.uk/blog/2006/10/04/why-doesnt-my-party-support-flat-tax/#comment-15983 Why not remodel VAT as a flat tax at the point of consumption? It's cheaper to levy because it involves collecting fewer receipts and avoids double taxation on savings and investments (and unless you consider that fair it is not regressive). Why not remodel VAT as a flat tax at the point of consumption? It’s cheaper to levy because it involves collecting fewer receipts and avoids double taxation on savings and investments (and unless you consider that fair it is not regressive).

]]> By: Dave http://www.gavpolitics.co.uk/blog/2006/10/04/why-doesnt-my-party-support-flat-tax/#comment-15871 Dave Wed, 04 Oct 2006 23:00:21 +0000 http://www.gavpolitics.co.uk/blog/2006/10/04/why-doesnt-my-party-support-flat-tax/#comment-15871 Agreed, I bet you also are not too happy about Cam and the N.H.S judging by the way you normally complain about it. He made a good speach, but it was not Conservative it was New Labour. Cameron on tax: "We'll only not take a huge chunk of your money when we can afford not to" !!! Agreed, I bet you also are not too happy about Cam and the N.H.S judging by the way you normally complain about it.

He made a good speach, but it was not Conservative it was New Labour.

Cameron on tax: “We’ll only not take a huge chunk of your money when we can afford not to” !!!

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