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Abolish Income Tax in favour of ConsumptionTax

Posted by Rueben on Sunday, 21 January 2007 17:04:59

David

Why dont we abolish the ancient concept of Income Tax? our modern consumer economy is more suited to consumption tax i.e the more we spend the more tax we pay and the more of a luxury the item is the higher the tax and as for food the more unhealthy it is the higher the tax the environmental impact or carbon footprint on the things we purchase could also be factored in to the rate.

What do you think?

Matthew Smith

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Posted by Tizzy on Sunday, 21 January 2007 19:01:35

To do away with income tax would necessarily do away with individual tax thresholds, thus the poorest families would be worse off since most of their income is spent on necessities.

Posted by Zoltan on Monday, 22 January 2007 19:44:46

I think this sounds like quite a good idea.

Assuming that necessities are not really taxed at all where there is no "greener" alternative, the poorer members of society would be no worse off at all, and the rich who buy lots of pheasant and caviaar can pay the rest :-)

Although I still think some form of income tax should be paid though, as this could lead to far less income for thetreasury.

Posted by kozmicstu on Monday, 22 January 2007 20:09:55

You can't tax pheasant!!!

:-(

Anyway, it's food - a necessity.

Posted by physics911comfan on Monday, 22 January 2007 21:16:13

you could tax pheasant ,it normally contains lead shot.this technically makes it value added and therefore subject to v a t

Posted by DaveGould on Monday, 22 January 2007 23:23:21

Well, the state should be encouraging the rich to give to charity/pay taxes/spend, and the poor to save.

Which is more or less what we do, although we can go further. Although it's a massive generalisation, poor people don't save. It's part of working class consciousness.

Carbon taxes are a good opportunity. It's scandalous that we don't tax aeroplane fuel.

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