Change the taxation system to a transaction or turnover tax
“Money should be taxed whenever a transaction occurs, so those who use money a lot pay more, those who don’t, pay less. Fair taxes! ”
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2. How does it fit with Compass’ core beliefs of equality, solidarity, democracy, freedom, sustainability and well being?
Sustainable. Buy from a producer one transaction it’s cheaper. Producer wholesaler retailer Three in supply chain Less green and each point tax is paid so incentive to buy local. Speculation is penilised because profit would have to be greater than tax. It is not a tax on wealth, only money. The rate of tax should be carefully considered so that, in time, a transaction tax could be the only tax necessary for Government revenues. Fairest tax: rich pay more than the poor. Only taxed money would be legal, so it could reduce crime - stealing breaks the tax rules.
3. How does it build the institutions of social democracy, like social groups and collective and cooperative forms of ownership and control?
Local co-operatives may encourage a barter economy to legitimately avoid transaction tax.
4. How much will it cost or raise and where will any cost come from?
The tax would probably mean the end of large cash money purchases, because to be effective, the banking system and payment by card would be the easiest way to manage and police the system. I would expect that cash could be used for a maximum of £100 spends at any one time. Some investment in new computers will, no doubt be necessary, but I am sure clever economists can use their economic models to test what rate is needed based on a range of turnovers. More spend = more income for the tax authorities.
5. Which groups in the electorate are likely to support or oppose this measure? Is there any polling evidence you have on this?
Don’t know. I support this. I would expect all relatively poorer members of society would support it. Speculators and people who play with money may oppose the idea.
6. Is there a place or country where it’s worked? Please provide some information.
Don’t know.
7. What are the three main arguments in favour/against it?
For
1) Fairness - those who use money most, pay most.
2) Green - tends to shorten supply chains.
3) Should reduce/eliminate money crime is only tax money is legal.
Against
1) Intrusive - the tax people will know what you spend your money on
2) The City may suffer or decline because speculators will be taxed when they buy - even buying overnight funds
3) International funds may not enter Britain - but I would like this tax applied world wide, if possible.
Comments
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Abigail Seabrook
What will this mean for the self-employed/SMEs? Maybe I’ve missed something, but I’m a self employed musician, maybe turn over 10-15K a year, however there are quite high costs involved in running my business eg lessons (singers must take these throughout their career) CPD, running a car to get me from A-B at unsociable hours, the list goes on. All in all, I end up making less than £6K actual profit in a good year, and you think I should be paid on turnover? Many new businesses do not make a profit at all in their first few years and taxing them on turnover will ensure that they fail before they’ve had a chance.
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David Chester
This proposal is like the so called “fair tax”. It is plainly unfair to take away from somebody part of his earnings or to collect some of his purchase money as a tax. What should be collected as tax is the lost opportunity that access to natural resources, particularly land value provides, that present speculators are enjoying. They achieve this without performing any kind of work and the unused land that they wish to speculate in would otherwise provide lots of work space for those who today are restricted by the high rents on what land is available, and consequently need to charge high prices from their produce. Taxation of land values is far better than any part of the production process where the tax depends on the quantity of labour or goods. TAX TAKINGS NOT MAKINGS.
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I was hoping I could ask you a rhetorical question about yourself, would that be ok? Its always good to share a great post.
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September 12th, 2009 at 12:13 pm
I was hoping I could ask you a rhetorical question about yourself, would that be ok? Its always good to share a great post.