Friday, 4 May 2012

Taxation - The time is right for a review

Taxation is never popular amongst voters and anything other than a reduction in taxation is always an unpopular move. The reality of taxation is that it is one of those necessary evils. If we all want to send our children to school, receive immediate medical treatment without having to hand over your card first, if you want to drive on roads rather than stone chippings and be safe from crime and terrorism then taxation is needed.
In 2008 the budget estimate for income from taxation was just over half a trillion pounds (approximately £541bn). The vast majority of the income, 72.9%, came from income tax, national insurance contributions, value added tax and corporation tax.
Under the current system there are twenty four different taxes. The taxation system is overly complicated and bureaucratic. I would like a review of the taxes.
The purpose of the review is to look at all the taxes collected, the income they raise for the government and whether they are still appropriate. In addition to this I would like to see the cost of collecting the taxes including those who make payments on time as well as the cost of recovering bad debts to see which methods are the most efficient in the collection of taxes. I would look to see whether any of the taxes can be merged to reduce the cost of collection. Finally I would like to see where the taxes are used and whether they are the best use of the taxes.
The review would also look at the government departments responsible for the collection of taxes to see whether it would be appropriate for all taxes to be collected by one central department rather than government departments and councils etc.
On Twitter? Why not post me your questions : @ThePMCandidate
The Candidate

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