Gransnet forums

Religion/spirituality

If you could start from scratch, what philosophical principles would you want to underpin our taxation system?

(104 Posts)
GrannyTwice Mon 13-Apr-15 18:58:37

anyone interested in having a discussion on this?

soontobe Mon 13-Apr-15 23:08:21

I have been trying to find out how much of tax is paid by business and how much by individuals, but I cant find the answer.

Meanwhile I came across this
www.telegraph.co.uk/finance/personalfinance/tax/11233686/How-top-3000-earners-pay-more-tax-than-bottom-9-million.html

That doesnt seem fair to me.
I presume that the statisitic is right though?

durhamjen Mon 13-Apr-15 23:00:33

Sounds like Marxism to me, as anno said.

absent Mon 13-Apr-15 22:42:47

Who was it who suggested that the system should be based on an assumption of being blind to your own situation? i.e. what would be fair if you were born into a rich/poor/middle family, if you were able-bodied or disabled in some way, if you were an only child/one of two/had a mass of siblings, if you had two caring parents/a single parent/uncaring or irresponsible parents/were adopted, etc. etc. I think that might be a good starting point.

janeainsworth Mon 13-Apr-15 22:31:30

Unfairness creeps in when taxation is not used simply to raise money to provide services and benefits for all members of society, but is used as an incentive to make people, or some people, behave in a certain way.

To give a simple example, a tax allowance or rebate may be given to new start up businesses, because the government wants more people to start up new businesses.

But the tax allowance may be seen by existing businesses to be unfair because they are having to pay higher taxes than the new business.

The perception of unfairness leads to perverse incentives and efforts to avoid paying tax.

So perhaps a starting point could be to stop using taxes to change people's behaviour, and concentrate on the primary function of raising money.

Jomarie Mon 13-Apr-15 21:06:54

I'm still with you Durhamjen. Unfortunately I have a very cynical element to my personality now, probably derived from being a daughter of a staunch conservative mother and a labourite father. I chose liberal - Jeremy was my hero back in the day. No more from me, I promise........

durhamjen Mon 13-Apr-15 20:46:51

That's the problem, Jomarie. Most people are not prepared to look at the taxation system as a whole, just how it suits themselves and their families.

Same with any other system, really. I do not believe we all have a selfish gene. I think people can cooperate, particularly in wages and taxes.
Unfortunately, Thatcher's idea of there being no such thing as society is becoming even more obvious these days.

durhamjen Mon 13-Apr-15 20:39:51

Yes, whitewave. Even more relevant now, I think. It's called Practical Action now, but still run from the Schumacher Institute.

Jomarie Mon 13-Apr-15 20:28:58

Ah well - I suppose we haven't really moved on much have we? - a snail's progress at best. The philosophical approach probably is just that "ah well - que sera sera"....... Am opting out of this thread now!

whitewave Mon 13-Apr-15 20:20:03

jen Schumacher there is a blast from the past!!

Ana Mon 13-Apr-15 20:10:30

Sounds like a Green Party manifesto promise to me!

durhamjen Mon 13-Apr-15 20:05:00

People who are sick, disabled or unemployed could still have a living wage, i.e. enough to live on.
It's the Schumacher principle of sharing work and responsibility.

soontobe Mon 13-Apr-15 20:03:57

A living wage would be great.
I dont see why that is unachievable for any of the political parties.
[I wouldnt care if that made some companies stop trading in the UK]. Having now written that, I suppose I might?

durhamjen Mon 13-Apr-15 20:01:48

It covers unemployment, sickness and disability. What do you think needs are?

Ana Mon 13-Apr-15 20:00:14

(to Jomarie)

Ana Mon 13-Apr-15 19:59:24

Yes, that would work, provided there was no unemployment, sickness, disability etc...hmm

annodomini Mon 13-Apr-15 19:59:22

From each according to his/her ability; to each according to his/her needs. Which apparently makes me a Marxist! I still think it's an excellent principle, but has it ever been made to work satisfactorily?

soontobe Mon 13-Apr-15 19:58:34

If it was at say 35%, I wonder whether some of them would not shout quite so loud about those who dont pay any income tax?

Jomarie Mon 13-Apr-15 19:55:33

I'm with Durhamjen! Problem solved.......

janerowena Mon 13-Apr-15 19:48:56

No, I think that's the unfairest of all taxes.

But what seems fair to one person does not to another, it seems.

rosequartz Mon 13-Apr-15 19:41:36

'In this world nothing can be said to be certain, except death and taxes'.

When you have died you can't argue so we can tax you at 40%

Is that fair?

jinglbellsfrocks Mon 13-Apr-15 19:38:46

Yes I have Mishap. Had a few days in Rome. Very nice too. smile

durhamjen Mon 13-Apr-15 19:29:07

Fairness, in tax and wages, for all who use any services in this country.

A living wage so that all are able to pay basic tax and therefore see they have an investment in society.

Mishap Mon 13-Apr-15 19:21:04

Have you been away jings?

jinglbellsfrocks Mon 13-Apr-15 19:20:09

Righto then. grin

GrannyTwice Mon 13-Apr-15 19:18:16

Thank you JBF for that helpful thoughtful contribution - I'll wait to see if a grown up wants to play