3 pages of gobble-de-gook & confusion. How's this for a fair system.

EVERYBODY pays 10% of their Total Gross Earnings in Tax from any sourse, including Off Shore hidie holes & Trust/Slush Accounts in someone elses name. 20% on non-refundable loans.

No Deductions of any discription for anything.

Get rid of all the Fees, etc.

Get rid of all the Rebates for paying Fees, etc.

10% GST on the first instance of everything then 10% on the Added Value only.

Abolish all other Taxes.

It's simple & fair. It ensures everybody pays taxes.

Jayb
I am all in favour of simplification but wouldn't the scheme you suggest have the following fatal flaw?

Say a business's income is $1,000,000, and expenses are $950,000, leaving the business owner a net income of $50,000.

If there were no deductions for expenses, then the income tax would be $100,000, which is more than he earns out of it.

So my question is, why would not that scheme cause the collapse of the business? I don't see how a tax on income could avoid taxing net income, in which case, there's an empire of jiggery-pokery in all the tax deductions for expenses.

I guess it was an over simplifacation. It would work for Wages & Salaries.

As regards to business expences. We all know that quite a bit of these expences are borderline fraud. An ex brother-in-law used to collect everyones expenses for the resturant bill, even for family & pay the bill on his MC. Then claim it off the Business. A Dr friend has never had a holiday, He has seminars. (I tried it myself once & went on a study tour overseas. It worked.I had all the right paperwork & letters of introduction, etc) Non-refundable loans. All these are common business practises claimed as expences. Consultancy expences would have to be the greatest fraud ever concocted, especially when you or the family own the Consultancy setup as another Company. One manufacture I worked for had every step of the process setup as it's own company. They all made a loss except one. Therefore tax paid was virtually nil. Most Big Companies are set up like that.

That's why personal income tax is so high. It's to make up for the legal fraud foisted on the Country by these big business. I remember the story of one notorious big businessman, despite earning millions, only paid $1 tax for the year. No names no pack drill, but you know who I mean.

?fair. I don't think so.

Jayb,

I agree with you in principle. But unfortunately where you can devise a way to make tax fairer, accountants, lawyers and businesses will find a loophole, because they can afford to invest resources into creatively adjusting their earnings to reduce tax.

"A Dr friend has never had a holiday, He has seminars."

Of course he does. In exotic locations.

However avoiding tax is never fraud, because the tax-payer never agreed to pay tax in the first place. It's just a straight power-play. Ethically and economically, taxation is no different from a robbery. On the redistribution model, all the bank-robber has got to do, to establish that it's not robbery, is point to the fact that he's got less money than the bank. If the armed gang got so big it was able to legalise its own robbery, it wouldn't be robbery, right? It would be 'fiscal policy'.

What is causing the high tax bill is not the fact that some people succeed in protecting their property from being taken against their will, it's government's confiscating it

Hi Peter,

I've read a few of your post regarding the principles of taxation with interest. I would like to hear your views on how our society would function without taxation.

Stezza