clv101 wrote:In the UK, and most countries in the world most tax is on labour. Physical resources such as energy and raw materials attract little tax.
This has resulted in optimisation of labour use, with less regard for optimisation of physical resources.
Since resources are scarce and labour is abundant, this situation is dumb.
I'd like to see a transition away from tax on labour and towards physical resources. Then we can let the market optimise resource use whilst affording more labour.
Absolutly, IMHO the long term aim should be to eliminate income tax and other taxes on labour, and to increase taxes on energy and raw materials.
A start could be made by indroducing a second, higher rate of VAT at perhaps 50%
This to be levied on goods and services that are needlesly damaging to the enviroment, and for which less damaging alternatives are available.
Examples might include
Incandescent lamps and fittings designed to use them
Disposable batteries
Fridges and freezers with an effeciency rating of "B" or worse
Computers and TV sets that use more than 100 watts
Anything that uses more than 1 watt on standby
Paper goods made of virgin rather than recycled paper
Cars that achieve less than 60 MPG
Air travell
Anything disposable for which reusable alternatives are readily available.
The tax system should also be greatly simplified in order to reduce the costs of tax collection, examples might include
Flat rate income tax on all income from any source over say £20,000.
Abolish national insurance, it does not actually insure against anything but is simply another income tax.
Wages and saleries for governmemt employees should be tax free. Simply reduce the wage rate, such that the take home wage is the same as at present, but saving all the administration.
What is the point of the government paying someone say £28,000 a year and then taking back £5,000 in tax? why not pay £23,000 tax free.
Avoid levying two taxes on the same item, in order to save on administration. For example petrol should be exempt from VAT, simply increase the excise duty so that the retail price remains as now, but with one tax to administer not two. Similar arguments would apply to drink and tobbaco.
Abolish road tax, thereby saving all the costs of administering and collecting it, increase petrol duty to raise the same revenue.