Brown’s Tax Illusion

I’ve just heard Shadow Chancellor, George Osbourne, claiming on Radio 4’s The World at One” that Britain now has the longest tax code in the developed world – a claim that I’ve no reason to doubt.

In a sense this merely serves to confirm what we already knew – that Brown is a ‘fiddler’ whose vision (although this is hardly the right word) is to sneak in a little stealth tax here or tweak some tax incentive there, all as part of his plan to work towards his socialist nirvana where everything is ‘controlled’ and everything is ‘fair’.

There’s just one small problem.  It isn’t working because it’s not capable of working.

For one thing it’s not fair: a vastly complicated tax code makes that quite impossible.  The only people who benefit are the super-rich who can afford high-powered tax advice and the tax experts who provide it.  Ordinary mortals are left out in the cold unable to utilize the loopholes that the rich can. 

For another thing it’s expensive:  it is equivalent to out-of-control overheads in the context of a commercial company.  And what’s the first thing a company in trouble has to do?  Cut overheads of course.

And finally it generates the illusion of economic progress and a growing GDP as all those expensive tax advisors work away but it doesn’t actually generate wealth.  Quite the opposite in fact as resources – both human and financial – are diverted from productive uses into an arms race with HMRC. 

Bring on flat tax (or at least a reasonable approximation to it).  It is fairer, costs less, and doesn’t divert resources from proper uses.

 

 

 

 

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2 responses to this post.

  1. Excuse me? You want a flat tax and you call yourself liberal?

    Reply

  2. Hello my friend! I want to say that this post is awesome,
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    Reply

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