Ive just witnessed an argument in the lounge based upon V.A.T. (Purchase Tax in USA)....
This got me to thinking...
I would be totally in favour of getting rid of most Excise Duties, in favour of higher Income Tax levels.
I dont mean on Luxury Goods like Gold (Currently zero rated for VAT for some reason)...but i dont, personaly, like the idea of children paying 17.5% of their pocket money in tax when they buy sweets (purely as an example).
While having some good points; for example high taxes on petrol (gas) make you consider driving less, and having smaller and more efficient cars. I think that, on the whole, VAT and its equivalents are just a means of getting money for the Treasuries without alerting the citizens to the true amount of taxation. They are also expensive to administer (not for the government, but for business VAT is a nightmare) and therefore drive up costs and Red Tape.
Its also not a very "progressive" tax, as everyone irrespective of income pays the same tax.
I prefer an upfront approach...let me pay the tax at source, and the rest of the money is mine. Make excise taxes the exception rather than the rule...
I mean, its not as if we even make money off the tourists with it...they can claim all their VAT back as they leave the country
I think the recent announcement of the merger of the Inland Revenue with Customs & Excise is a perfect opportunity...
Now i'll go to bed, before J'Pol jumps all over me
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