The UK’s Independent: the Speech George Osborne Should’ve Made
|December 24, 2013||Posted by Staff under Good Press|
This 2013 excerpt of Great Britain’s Independent, Dec 5, about cabinet minister George Osborne is by Dominic Frisby, author of Life After The State, published by Unbound, and extend English coverage of this fundamental idea.
Our system of tax is too complicated. Our tax code is 11,000 pages long. That is too long. By about 10,990 pages I’d say. It makes blunders and fraud inevitable.
But it’s worse than that. Our system of tax is immoral, it is inconsistent, and it creates inequality.
So I am simplifying it. Here’s how.
Why should the multi-national corporation with an army of accountants employed solely to deal with the taxman receive better treatment than the local small businessman? Why should any group receive special favour? That is not social democracy — it is crony capitalism.
From now on, we will have a simple flat rate of tax across the board.
Excess taxation creates three Fs – Fight, Flight, and Fraud.
Government obligations will fall. With more money in their pockets, people will be able to buy for themselves the services for which they now depend on government.
People spend and invest their money better than governments do. We restore people’s moral right to keep the profits of their endeavour.
There shall be no more quantitative easing. We do not need to print money and give it to banks to lend out to get the economy turning. This is just giving banks special favour – more stuff of crony capitalism. Instead we let people keep the money they have earned. Their own spending and investment will grow the economy. And the growth will be genuine, not built on finance and malinvestment.
We live on just 7 per cent of the land. Only 2.5 per cent of land is actually built on. A decent house can be built for less than a £100,000. Yet the average age of the first-time buyer in London is now over 40. He or she’ll be a pensioner before they can start a family.
We introduce a simple land value tax. We do not tax their labour, we tax people on the land they use. We do not tax production, we tax consumption. If you are one of the 1 per cent who owns 70 per cent of the land in this country, you will pay tax on that land. If you do not wish to pay tax on it, then let the land pass to someone who will.
The unearned wealth that is the land shall be distributed fairly and equally. And people will be able to build houses for themselves.
We have drawn from the example of Singapore, whose tax rates are low and simple. It ranked the second most competitive country in the world, and it has the highest rank in terms of trust in politicians. It has the third highest GDP per capita, after Qatar and Luxembourg.
Low tax, flat tax, simple tax and land value tax. Why on earth has it taken us so long to het here?
Ed. Notes: This op-ed is a Christmas present for me — well said, covers all the bases, and gives one hope.