Tackle UK debt love affair with 'spending tax'

de1amo

are these the same bankers that led us down this path!!

kennyboy66_2

Worringly this is a bit back to the 1970's.

When VAT was introduced it replaced various sales taxes including "luxury taxes".

abaxas

Really2 wrote: »

So what if you are are trading as a sole trader or a partnership.

I for one would welcome it.

Find me any sole traders that dont fiddle tax.

Milarky

An 'expenditure' tax is really just a modified income tax - a theoretical model of tax - that exempts capital-formation (i.e. tax is only deferred) compared to traditional models of income tax. And in practice that means exemptions for all savings. Just the sort of thing that a spokesman for the investment 'industry' would favour.

Really2

abaxas wrote: »

I for one would welcome it.

Find me any sole traders that dont fiddle tax.

I presume this is a mortgage holder tax you want basically

It's about as sensible as increasing tax on savings to stop people spending.

There is already a tax on borrowing, it's called interest (I believe banks pay tax on profits).

But by your example above it would make no difference as people would find a way round it.

abaxas

Really2 wrote: »

I presume this is a mortgage holder tax you want basically

It's about as sensible as increasing tax on savings to stop people spending.

There is already a tax on borrowing, it's called interest (I believe banks pay tax on profits).

But by your example above it would make no difference as people would find a way round it.

But that is true of almost all tax.

Really2

abaxas wrote: »

But that is true of almost all tax.

Thinking logically would a debt tax not be a rebate as you don't get taxed on a loss?

So could I claim £X extra out of my income tax for any debt payment?

A debt tax simply is punishing the poor "again" as they would as usual be the hardest hit and their burden would increase as the inability to pay would.

The idea of most taxes is that they raise revenue not punish people. So increasing taxes on those least likely to afford it simply would not raise revenue or cut consumption.

abaxas

Really2 wrote: »

Thinking logically would a debt tax not be a rebate as you don't get taxed on a loss?

So could I claim £X extra out of my income tax for any debt payment?

A debt tax simply is punishing the poor "again" as they would as usual be the hardest hit and their burden would increase as the inability to pay would.

The idea of most taxes is that they raise revenue not punish people. So increasing taxes on those least likely to afford it simply would not raise revenue or cut consumption.

Maybe we are living in the wrong world. If our economy mearly exists to buy more things we dont need.

Maybe time for a change?

Thrugelmir

JP45 wrote: »

It hardly seems sensible to increase tax on spending whilst the economy is still mired in recession with the prospect of low or anaemic growth for the foreseeable future.

You'd think someone who works in investment would understand the importance of timing.
.

Do you have any alternative suggestions as to how to change the culture of the UK?

Sometimes using "a stick rather than carrot" is the only way of implementing change.

nearlynew

Really2 wrote: »

The old "JaffaCake" biscuit court case springs to mind.

I love the way McVities won this case....

They claimed that, when stale, biscuits go soft and cakes go hard.
So because jaffa cakes go hard they were accepted by the judge to be cakes, so no vat is payable.

briliant.