TAC0001

Written evidence submitted by Stuart Barlow

 

Post Covid Govt Tax

4 suggestions for reforms of the UK tax landscape.

 

Individual interested in a fair, equal and successful society with a background in economics and IT (and bikes).

Summary

Suggestions that…

        cope with a more global world

        bring transparency and simpleness

        broaden tax burden

        recognition of a growing gap between top and bottom of society

        recognition that govt finances will be weak post Covid

 

Companies

Corporation tax is based on profits. Or more accurately an accountants view on a companies 'profit'. In a global world of commerce it is easy to move and hide profits. Countries race to the bottom with tax rates. Why would we want to provide a disincentive to be 'profitable' so punishing good companies. Why should we bias this tax away from companies with 'clever' and large accountancy operations.

 

Instead tax sales revenue. This could be at a lower rate than current profit based corporation tax. Revenue is harder to hide or move. Revenue more accurately reflects the scale of a companies involvement in a country. A company with a high sales revenue in a country is benefiting more from the central services that a strong, stable and effective  government is providing (healthy, wealthy and stable society with reliable infrastructure).

 

Land

We currently have a system of property and land taxes that don't necessarily target individuals or organisations who have the means to pay. Instead land valuation tax. Would enable revenue raising from holders of large land banks, from unused land held by speculators. Again benefits in a global world where many parties from outside the UK wish to own UK Land. UK Land is attractive because of the stable, healthy and wealthy society that strong government supports. The UKs solid legal structures also provide an incentive to own UK Land. We need to charge for these benefits.

 

http://www.landvaluetax.org/what-is-lvt/

 

http://www.andywightman.com/docs/LVT_england_final.pdf

 

Financial services

The UK is home to a strong financial services industry. Again this benefits from strong government with strong legal frameworks. A simple and clear financial transaction tax levied at a low rate, maybe 0.01% would enable revenue earning from this economic activity. It would provide a disincentive to purely speculative movement of financial resources. The movement of physical resources across borders will often incur tarifs so why not financial resources?

 

https://www.robinhoodtax.org.uk/

 

Individuals

Covid has heavily impacted low and insecure earners. Those with wealth have continued to earn (depending on sector) and those with higher income earning potential have more often continued to work (again skewed by sector). There is a growing movement in the US to tax ultra high worth individuals, partly driven by those individuals.

 

https://elizabethwarren.com/plans/ultra-millionaire-tax

 

 

 

July 2020