Taxing Times

    "Forgive me father for I have sinned." I said through the grill.

I heard an exhalation that I took for a sigh, and then, "What is it this time child?"

  Okay it didn't actually happen like that but I do confess that I've always had a secret interest in politics. There will now be an interlude while you mutter something along the lines of, "crazy fool."

  I have a sneaking suspicion that this fascination came from my maternal grandfather who was an ardent trades unionist back in the day when the unions were a powerful force.

  I've voted in every general election since 1976; more often than not voting for the party that eventually formed the government. I don't claim any special power that enables me to predict these things; I just get fed up of the mob in power at the same time as lots of other people.

  I've always occupied the middle ground of British politics; occasionally veering to the right, before swinging to the left for a while. We won't mention the disastrous flirtation with the Social Democrats, or the Liberals.

  I've never studied this but I've always subscribed to the theory that people, when they vote, follow the money; I certainly have. When I was poor and impoverished in my teens and early twenties I was a socialist; the poorer I was, the redder I became. Conversely, when I became a bit better off in my thirties and forties I swung the other way, becoming a rabid Thatcherite. Now, in my fifties and poor once again I feel the socialist in me bubbling to the surface.

  In line with these thoughts I've been giving some thoughts to the taxation system in the UK. I don't know how it is in other countries but here in the UK we seem to be taxed on just about anything and everything. Apart from the standard income tax and national insurance - despite the name - a tax, we have VAT, council tax, capital gains tax, inheritance tax, stamp duty, car tax, crossing the road tax. Okay I made the last one up but we do have air passenger tax, and insurance premium tax. I'm just scraping the surface here and could go on for hours, but I'm sure you get the picture.

  Now to my mind the first principle of any taxation system should be that it's fair and equitable. In my opinion the UK taxation system is anything but. If you have enough money you can employ tax accountants to drive a coach and horses through all the loopholes that a complicated tax system leaves in its wake.

  Bearing in mind that if the benefits system is means tested then why shouldn't the taxation system be likewise. Therefore my solution to the problem would be: if you're unemployed you don't pay any tax at all. That's right - none, on anything. If you're employed but don't earn enough to pay income tax then the only other tax you would be obliged to pay would be VAT at a rate of 5%. If you earn enough to pay income tax but less than £20k pa, then you would pay the full range of taxes but at 50% of the full rate. There would be a sliding scale of tax eligibility rising to an income of £50k pa where the tax rates would be a lot higher than they are now; e.g. VAT at 30%. The simple principle being: the more you earn, the more you pay.

  Of course I reserve the right to alter it should I ever win the lottery! 

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Just a Little Snip With Some Scissors

    When my wife and I were casting round for a way of economising a few days ago and she suggested cutting my hair I thought she was joking, until I saw the look of intent on her face. It was unlikely to save much I protested; after all I only have a hair cut every three months. That's four times a year, and at £10 a pop it's not exactly breaking the bank. I didn't like to suggest we'd save far more if chocolate was never bought again - ever!

    When nothing happened immediately I thought I'd got away with it, but I should have know better. Fast forward to Saturday night; nothing worth watching on the TV - when is there ever - and she said, 'Come on I'll cut your hair.'

    I know, I know, I could have said no; feigned some illness, but in truth the TV was really boring, so I agreed.

    I was a little nervous at first, especially when I saw what scissors she was using; they were little blue ones the kids use in craft activities. Still they were sharp, and to be fair they weren't the ones that cut paper in wavy lines.

    I've never known a hair cut last so long though; I swear I fell asleep for a while. It was snip here, snip there, for well over thirty minutes. She kept standing back and assessing, then there'd be another little flurry of snips.

    Still, we had a laugh; although she found it far more amusing than I did, judging by the way she chuckled every time she stepped back for a clearer look.

    'What's the difference between Harrison Ford and Catweazle? She asked at one point. I told her I didn't know. 'I can't see one either.' Was her enigmatic reply.

    Eventually I was allowed to look in the mirror, and it was, well... unlike any haircut that I've ever had before. Well maybe it was a little bit like the one done by the drunken barber thirty years ago who managed to cut both sides of my hair a different length. No, I think it was better than that! 

    All I have to do now is decide what to spend the £40 a year on that I'm going to be saving.

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Does it add up?

    So the Bank of England has decided in its wisdom to inject a further 50 Billion pounds into the UK economy. Will that make your life easier? Will it make my life easier? Will it help get the economy moving again? 
    I suggest the answer to those questions is a resounding no.
    Now the adult population of the UK is considered to be approx 51 million. How about if the Bank of England gave each and every one of those adults a million pounds straight into their bank accounts. 
    What a way to get the economy moving that would be. Furthermore it would only cost a fraction of what it's costing now. Will they do it? No, of course they won't. 

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