The Economy Proposal

The Economy proposal is part of the vinceunlimited Political Concept which was published in 2005 to offer some alternatives to the Status Quo of British politics. Because nobody wanted just two chords in Parliament.


The Economy

Taxing Problems

Limitations

As you can read, under the section 'Political System' I have already proposed a radical way in which important issues such as the economy of our country should be dealt with.

By appointing the most suitable Chancellor of the Exchequer I would be foolish to think I could do better, so I will not attempt to detail how I would keep our country's taxes at bay.

However, even the most astute Chancellor would need to have some guidance on policy.

Taxation

This is not a new idea but it is radical.

I believe that revenue collection via general taxation on earnings is fundamentally flawed.

It would be a far better thing to shift that taxation burden onto expenditure, in other words from earnings based taxation to purchase tax.

In this way taxation becomes a choice. If you don't buy anything you don't pay any tax.

Obviously there would need to be controls to prevent earning in this country and spending in another and our balance of payments would need to be carefully controlled but there is no reason why this system could not be made into a global issue.

Additionally, there may need to be some incentives to spend when the mood of the country is gloomy, such as when England loses at football.

Naturally there would be big benefits such as the shifting of offshore accounts back into our economy, incentives for individuals to work harder without unreasonable penalty and the general feeling of fairness.

However I would work on reducing the number of taxable areas.

Just adding another layer of purchase tax to all the myriad of other taxes would be unacceptable.

It is ludicrous, for example, that presently when you purchase a car a special car tax is added on before the application of VAT. I would certainly not propose another layer. There will be no tax on tax on tax!

If we can resolve the issue of purchase rather than income tax then the purchase system will be a single agreed percentile, perhaps varying for certain products.

Our clever Chancellor will have to decide the levels.

Spending

Again, because I am not familiar with the details of expenditure for each governmental department I cannot glibly quote figures and blind you with facts and figures.

In fact from where I'm sat in relation to you reading this I couldn't blind you in any way at all. Unless I suggested you increase the contrast to maximum and stare at the screen for three days. But I wont, you'll be pleased to learn.

However I am aware that the big areas of expenditure are defence and social security, both of which are drains on our economy that we would be better off without.

I will not attempt to resolve these complex issues here but release of just a small fraction of defence or social expenditure could release enough expenditure to almost double some other areas of need.

Well worth mulling over a pint or two with the newly redundant Brigadier.

Pensions

As we are an ageing population there has been recent discussion about the inadequacies of our future pension needs.

Current thinking is to raise the retirement age to accomodate the predicted shortfall. Instead, why not add two or three years more pension contributions on at the beginning rather than the end by commencing schemes from an early age?

I would investigate national compulsary pension contributions from around age eighteen, after all it is this young generation that has true freedom of wealth. They may bemoan the ability to pay but this is usually done whilst propped up in a bar spending ten times as much on temporary gratification.

I would explain that early adoption would ease later hardship.

And if anyone decides to opt out of this then I'd get them to sign a contract and waggle it under their nose when they deride the basic, non-means tested, inflation proof, limp set payout.

National Debt

I'm no fan of debt.

I do understand why we have a national debt but would personally work towards reducing this burden to nil, then become an effective creditor.

Just think of the interest we could then charge the French.


Links



Author: Vince Poynter
Version 5.128 6 Jun 18
Political Section, including Economy, First Published: Version 2.00 May 2005
Pensions Section first added: Version 2.03 in Jun 2006