I'd rather have you in charge than the current lot. But.
Land value depends on what you're allowed to do on the land. So I worry about the market fixing incentives there.
"The claims that it’s up in the high 70% are tossery - that’s assuming that there are no allowances. "
Marginal rates count, though. Also I mentally include VAT in income tax, because if I'm not spending my extra on consumption of luxuries what's the point? So working harder has limited value which affects my incentives.
In Hong Kong everybody pays income tax, but it starts at 2%, and caps out at 17% over HK$200,000 (ukp20,000-ish). Interestingly, if you find the tax system too complicated you can opt to pay a flat rate of 15% on everything.
I would get rid of VAT entirely, because there's such a strong correlation between the people who buy Ferraris and the people who earn a lot of money. So instead of having a whole lot of government and bureaucracy, just raise the upper levels of income tax. You pay a bit more tax have a bit less money, but it gets balanced out by the Ferrari being 20% cheaper.
I'd still retain things like pollution taxes as there isn't the same correlation.
If people pay no tax at all, surely their concern or interest in how that tax is spent becomes minimal or non existant. Is there not an argument that keeping IT in place but at a low level, even for the low waged is not beneficial; say 5% and 10% tax bands?
I'd rather have you in charge than the current lot. But.
Land value depends on what you're allowed to do on the land. So I worry about the market fixing incentives there.
"The claims that it’s up in the high 70% are tossery - that’s assuming that there are no allowances. "
Marginal rates count, though. Also I mentally include VAT in income tax, because if I'm not spending my extra on consumption of luxuries what's the point? So working harder has limited value which affects my incentives.
In Hong Kong everybody pays income tax, but it starts at 2%, and caps out at 17% over HK$200,000 (ukp20,000-ish). Interestingly, if you find the tax system too complicated you can opt to pay a flat rate of 15% on everything.
I would get rid of VAT entirely, because there's such a strong correlation between the people who buy Ferraris and the people who earn a lot of money. So instead of having a whole lot of government and bureaucracy, just raise the upper levels of income tax. You pay a bit more tax have a bit less money, but it gets balanced out by the Ferrari being 20% cheaper.
I'd still retain things like pollution taxes as there isn't the same correlation.
If people pay no tax at all, surely their concern or interest in how that tax is spent becomes minimal or non existant. Is there not an argument that keeping IT in place but at a low level, even for the low waged is not beneficial; say 5% and 10% tax bands?