By Dark Politricks
Tomorrow is the 2012 Budget in the UK, which comes at a time of low growth, austerity, high jobless rates, almost zero interest rates and high inflation.
There is lots of talk about what the Chancellor might be doing today including whether or not he will cut the top rate of tax 50% for the richest people in the country. Apparently these people are deterred from coming to the UK and creating jobs due to the perception that “Britain is not open for business” and we are “anti entrepreneurial”. Whether there are any facts to back this I don’t know but it would be interesting to see evidence either way.
I don’t really care if they reduce this tax level or not as long as an independent organisation can show that doing so will bring in more tax revenue and create jobs than by having it.
There might be some truth when people like John Redwood, the right wing Tory MP says in he wants to see rich people pay more tax and the way to do this is by reducing tax rates so that less money is spent by those rich enough to afford expensive lawyers on getting round the existing and very complicated tax laws.
Most company owners don’t pay the high tax rate anyway because they just pay themselves in other ways or though dividends and capital gains which has a rate much less tax rate than the current 50% top rate of income tax.
Therefore if I had to choose a budget for tomorrow I would do the following:
1. Scrap the existing tax code which is far too complicated with too many loopholes for those rich and clever enough to exploit and make a simple code in which:
- No one pays tax until they earn over a certain threshold like £10 or £20k. The coalition want to raise the threshold to £10k and they are on the right track by removing people out of paying tax at the lower end of the scale. These are the people who are reliant on all the bus routes, libraries and other public services that are being cut at the moment
- If a flat tax can be proven to bring in more tax revenue than a progressive rate then I am all for what works. I have no ideological problem with a flat rate if it can bring in more revenue. We need more money from the richest in our country and if a flat tax prevents them from using offshore accounts and loopholes then I am happy to try it.
- Close every tax loophole available. A simple and fair tax code with no loopholes to be exploited will ensure the richest cannot escape tax though their lawyers and clever avoidence schemes.
2. Make sure any company that wants to do business in this country pays tax in this country. No post boxes in the Cayman Islands as the Company HQ. A company who wants our huge market should have to set up a UK subsidiary and all revenue make in this country should be taxed at our rates and stay in our country.
3. Incentivise companies who take on any of the following people with tax breaks and other schemes.
- Long term unemployed.
- People with disabilities.
- People who have just come out of prison or are on the way to spending a life in and out of prison e.g gang members.
- Young people who have not had a job since leaving college or school for a year.
- Older people who have not worked for a while, have no private pension and are too young for the state pension.
4. Totally nationalise the banks we own the majority stake in and run them for the good of the nation. Profits are retuned to the treasury or given out as loans to more “riskier” small business who require funding. However the key aim should be to ensure that any company wanting to expand and create jobs but cannot currently get funding can get the money they need.
5. Parts of the country heavily reliant on Public Sector jobs that are being cut should have large amounts of government investment including incentives for private companies. Companies willing to relocate or base their factories and offices in Wales, Scotland the the North should get tax breaks at the very least.
6. Any company who hires a currently unemployed British citizen should be given a 1-2 year national insurance holiday. Get British people back working and make it worth UK companies while hiring them over cheap foreign labour.
7. Keep some pre-election promises by re-balancing the fuel tax escalator so that as the price of petrol rises the amount of tax going to the treasury decreases, keeping the overall price stable for the customer. As petrol speedily heads towards£1.50 a litre with most of it going to the Treasury the amount of fuel tax as an overall percentage should be reduced as the cost of oil rises.
8. Give every tax paying worker in the country a tax rebate of £1000-£2000 in the form of a voucher that can be redeemed in any shop in the country. The previous VAT cut wasn’t even noticed by shoppers, especially at Christmas time when every shop reduces their stock by over 20% anyway. Cash can be saved or used for other means but a voucher with a use by date would ensure the tax payers who have basically bailed this country out of the bankster incurred mess are repaid as well as stimulating the economy by ensuring the money is spent in shops that badly need the business.
9. Scrap Trident – a nuclear missile system we cannot even use without US say so and their GPS guidance system, so in all likelihood will never be used anyway. Instead spend the multiple billions a replacement would cost on shoring up our overstretched armed forces. If we are going to continue to ask them to fight war after war we should ensure they have the best equipment, proper housing, proper help when they return limbless and mentally distressed as well as giving a sign to other countries like Iran and Israel that responsible nations that already have nukes are prepared to give them up.
10. Invest heavily in public transport without making it so expensive to drive a car that taking a bus or train looks cheap in comparison.
There can be no proper private competition on a railway – no two trains can run the same line at the same time. Public transport should be run for the good of the nation and any taxes spare from the multiple taxes on motorists (road tax, petrol tax, vat etc) should be used to make public transport cheap and a viable option not a second choice people are forced to use for whatever reason. If other countries can do this we surely can.
Those are just 10 points I’ve just thought of whilst watching TV. I’m sure with another five minutes I could come up with at least another 10 more.
Will Boy George Osborne look after his core constituents and screw the poor or are we really “all in this together” like we continually get told. Only time will tell.
Lets wait and see what happens tomorrow.