Saturday, 30 January 2016
Sales tax or a chance to make fundamental tax reform .
I note in the media this morning that Lord lawson of Blaby is suggesting replacing corporation tax with a sales tax and maybe further reform of the whole taxation system maybe required.
I have for several years now believed that urgent fundamental change is required not only to make the tax system just and fair and equal to all , but to act as a catalyst for the transition from an unsustainable state in environmental and ecological terms, as the climate change debate is highlighting the necessity to act quickly on all technological solutions to climate change , but as has been highlighted it is the fiscal and monetary systems that are at the core of where and how fast we adopt the right policies to avoid the unsustainable state of the planet we have at present.
As you suggest moving the direct taxes from corporation tax to a sales tax does indeed help to sort the problem of the day, but it still leaves many loopholes that leaves the tax system as an unfair and unequal system. Tax systems of the past and to date have always ignored the abuse of all the resources that are causing the present problem , from fossil fuel extraction, abuse of land use, and many aspects of human abuse around the globe in slavery and exploitation at all levels by businesses but also individuals also.
A fundamental tax system of the future has to move away from funding wars, and subsidies to large corporates to make profits without paying a living wage to its employees. This must all change if we are to have a world we can all live in without fear and with a mutual equality that all humanity deserves.
I have been promoting a new tax system that would replace all existing taxes by introducing a tax system based on taxing all Natural Resources at source , This new tax would be collected according to the actual and potential damage all those resources cause by their use and consumption. This would indeed be a little like a sales tax but one based on the damage to the planet all human activity has upon it, and now maybe the time we look seriously in trying to achieve a whole new taxation system that addresses the future needs of our grandchildren and the ecosystems of the planet.
This fundamental change would achieve many of the problems we are struggling to achieve , from fairness to equality but also to tackle fraud , evasion, and avoidance. The tax collected at source means that the price of all resources would rise according to its environmental damage factor and would make the polluter pay, The cost of this tax is passed on down the chain of production , making all goods and services more expensive according to it environmental impact, The consumer would make the final choice and would pay for the damage caused to ecosystems, The consumer is the polluter and the more they spend the bigger the polluter, but at least they would be paying a fair tax to help prevent it further damage.
I do hope you look further into the future rather than just another tinker subject to further loopholes, fundamental research and change is urgently needed, not to just solve greed of a few but help solve the planets ability to support life itself!
Money=energy= climate change
Your expenditure or salary is the same as your environmental footprint.