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Scrap Income Tax

As a topic for discussion, how about we increase VAT to 50% and scrap income tax. Essentials are zero rated, so you only pay tax on luxury goods (OK I know there are lots of anomalies in the definitions at present). If you just buy food and clothes you pay no tax, if you buy a new car or yacht you pay 50%

Comments

  • Adult-sized clothes are VAT-able.
  • How about scrapping both VAT and income tax, and instituting a wealth tax instead?
  • If "Wealth Tax" = Land Value Tax then quite agree.
  • Clothes - OK change the VAT rule to exclude all clothes.

    Wealth tax, mansion tax etc, I totally disagree on many fronts.
    1) Owning a house worth a million does not mean you are rich, you may have bought the house when it was affordable or inherited it.
    2) A house in that price bracket is impossible to value with any accuracy.
    3) Just placing higher and higher tax burdens on the rich is a complete disincentive to be successful. People in the very low income bracket should not pay as much tax, but above that why should everyone not pay at the same rate? High rates of tax just create even higher rates of pay to compensate.
    4) Taxes of this nature just hit the 'ordinary' high pay people. Many will be able to avoid them anyway, taking bonuses, shares, benefits, to reduce base pay.
    5) It makes just as much sense to tax based upon numerous other arbitrary possessions, owning a car worth more than 50K, owning jewellery, membership of a golf club. All make as much sense and all ridiculous!

    Please note that I personally would not be hit by wealth or mansion tax, I just feel that they are both wrong.
  • I like the land value tax.

    Variable VAT rates are a good idea. I am not so huge on VAT in general as it hurts the poorest and think there should be a few bands of items. Clothes under a certain value (you have to pay VAT on a £300 hat), food at 0% maybe a 10% band for "non-essential" items under a certain value e.g. TV's, laptops and a higher band for luxury items like new Mercedes.

    I would agree with some sort of stored wealth tax. A mansion tax in certain areas and situations.
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