« PETA update | Main | Ken losing support - before he starts. »

Flat Tax Cover-up

Telegraph | News | Treasury blocks move to flat rate inflation

The Treasury has suppressed arguments in favour of introducing a flat tax - a radically simplified system charging the same rate on all income - documents passed to The Daily Telegraph show.
The system is being backed by free market reformers worldwide but a Treasury paper released under the Freedom of Information Act last month had key sections detailing the advantages blacked out.

As a result, it was interpreted as showing that the Government had dismissed as "misleading" arguments for abolishing all exemptions and charging the same rate of tax on all personal and corporate income.
The uncensored paper seen by The Daily Telegraph presents a more balanced picture, acknowledging that a flat tax could increase economic activity and tax revenue, making Britain more attractive to foreign investors. It could create a "mini-economic boom" and would "eliminate distortions", the paper says.
Part of a two-page section that was removed says: "The reduction in rates and thus the tax burden faced by individuals should, in theory, stimulate further economic growth" and would establish "a one-off virtuous circle from tax cuts to and would "eliminate distortions", the paper says.

I will leave the arguments in favour of a Flat Tax to those more qualified to comment - though the simple advantages of fairness, simplicity and the success elsewhere seem self-evident.

More interesting is the way that this briefing paper was censored - I can't think of a possible national security risk, nor of any personal details that could be at risk by this disclosure - purely that it might be embarrassing for the Government and the entrenched special interest groups in the Treasury.

And also here is a simple clear policy that the Tories could adopt that would differentiate themselves from nu-Labour, that would align themselves with some of the booming EU countries rather than the stagnant ones. Because if the Tories don't start pushing some policies that we can identify as Tory then what is the point of the Tory party? Answers on a postcard please.


Yet another example of how some things are the same on both the east and west sides of the proverbial pond.

It's a real wonder that all western governments haven't been shamed into adopting the flat tax by the successful example set by both China and Russia, the two nations the western world's "conservatives" love to look down their noses upon. The fact that someone in the Blair government felt the need to censor portions of a flat tax proposal simply demonstrates that the State will go to any extreme possible to head off any serious tampering with its means of sustenance. No matter that smaller tax rates have proved in every case to bring in more revenue; maintaining the status quo, with all the power and perquisites it bestows (particularly power) is infinitely more important.

If you dont see the point of the Conservative party, vote Labour.


you people in Britain are being given the mushroom treatment

Post a comment