A taxing problem!

image
Print Friendly

 

With all the press and political hysteria this week about some celebrities like Jimmy Carr avoiding tax via unorthodox but perfectly legal methods, just what is the situation and how does the average taxpayer feel about the current position. We all want to pay less tax but the problem is, the vast majority of us have to pay at source. To be honest, which most of us are, while grumbling about the amounts deducted and how it is spent (or wasted) I think it is fair to say that if we want a decent country to live in with benefits such as a free national health service, good schools, and a robust infrastructure, we all need to contribute.

My own view is simple; the Government should simply spend some serious time evaluating the tax laws in the UK and simplify them so that there is a fair rate of tax for all, and people cannot dodge paying tax while using clever schemes dreamt up by bright accountants. George Osborne has said that a much simpler flat tax system should be investigated for both individuals and also businesses which everyone understands and more importantly, is happy to pay. The Institute of Directors have also said they agree with a flat tax rate of about 30% with a simple personal allowance of about £10,000 and then no other taxes such as Stamp Duty or Inheritance Tax. The fact is, in the current tax system, it’s the working man and woman who are on PAYE who always get clobbered and have to pay taxes.

In the USA an economist at Stanford University, Alvin Rabushka, has been promoting a flat tax for years. He has studied various eastern European countries and says that those who have adopted a flat rate have benefited from less tax evasion and corruption and enjoyed one percentage point higher growth than their neighbours.

“There is study after study after study, and all the estimates for job creation and for growth have a positive co-efficient over the long term,” he said.

In the 1980s, the Regan administration actually reduced the top rate of taxes and famously started to receive increased revenues from taxes, as the more wealthy Americans simply paid the tax rather than found ways of avoiding it. Maybe we should look at this as well in the UK?

Reading the papers this week it seems there are all sorts of ruses for the rich to avoid tax in a legitimate method; even taxes like Stamp Duty payments can be diminished significantly. With the current worrying economic situation and the concerns of the public surely it’s time for the government to act and bring in a simpler system?

What’s your view?

 

The following two tabs change content below.
Hello ... I am the Creative Director and Website Editor for Silversurfers and manage all the social media too. I hope you find the features and articles we have shared with you of interest and relevance. Please feel free to comment below and share your thoughts with us ... I hope you enjoy Silversurfers and all that we offer ...

Latest posts by Silversurfers Editor (see all)

Not a member?

Join the silversurfers community today! It's free, easy to do, and is packed full of features and amazing offers!

Join the community!
Click here if you have forgotten your password

Community Terms & Conditions

Content standards

These content standards apply to any and all material which you contribute to our site (contributions), and to any interactive services associated with it.

You must comply with the spirit of the following standards as well as the letter. The standards apply to each part of any contribution as well as to its whole.

Contributions must:

be accurate (where they state facts); be genuinely held (where they state opinions); and comply with applicable law in the UK and in any country from which they are posted.

Contributions must not:

contain any material which is defamatory of any person; or contain any material which is obscene, offensive, hateful or inflammatory; or promote sexually explicit material; or promote violence; promote discrimination based on race, sex, religion, nationality, disability, sexual orientation or age; or infringe any copyright, database right or trade mark of any other person; or be likely to deceive any person; or be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence; or promote any illegal activity; or be threatening, abuse or invade another’s privacy, or cause annoyance, inconvenience or needless anxiety; or be likely to harass, upset, embarrass, alarm or annoy any other person; or be used to impersonate any person, or to misrepresent your identity or affiliation with any person; or give the impression that they emanate from us, if this is not the case; or advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.

Nurturing a safe environment

Our Silversurfers community is designed to foster friendships, based on trust, honesty, integrity and loyalty and is underpinned by these values.

We don't tolerate swearing, and reserve the right to remove any posts which we feel may offend others... let's keep it friendly!

More Tax

Seven ways to reduce your Inheritance Tax Bill Illustration depicting a computer screen capture with an inheritance tax concept.
Inheritance tax is often called a ‘voluntary tax’ because with a little forward planning for...
How to Protect YOUR Wealth for YOUR Family Portrait of an extended family with their pet dog sitting at the
Are you worried about your children’s inheritance being lost through a divorce, or relationship...
Tax in retirement M_Tax-retirement
Tax gets unexpectedly complicated in retirement. Which? has a long history of offering clear and...
Capital Allowance Change MONEY
Capital allowances have have changed from 1st January 2013 In the Autumn Statement, the...
Pensioner P60 plea to simplify tax P60
Pensioners should receive P60-style annual statements as part of moves to make the tax system...
Are you Will-ing to plan for inheritance tax? bigstock-Nest-eggs-16037291
Inheritance Tax (IHT) is a tax that needs to be taken seriously by any individual with assets in...
Will Aid 2012 .... don't miss out! For_Will_Makers
A great idea has been relaunched  called Will Aid where by drawing up your Will with a local...
Financial freedom 'for seven years' mail
The typical British adult has just seven years of financial freedom during his or her lifetime, a...