Taxes are something most people would not like to pay or pay as little as possible.Modern economies cannot function without taxes to pay for basic services we need.
The rational for taxes is that those people who earn the most should pay the most to help those people who earn the least therefore should pay the least taxes.This is seen as a civilizing influence for a just and equitable society.Although in practice this system has not worked out so well
So taxes are paid for roads,schools,hospitals,pensions etc.These are known in Economics as Public Goods.As it would difficult for any one person to pay for all of these things,through collective provisons we all benefit from these public goods.Taxes can be seen as mark of just society,that looks after the weakest members of society and provides a basic living standard which keeps people above the poverty line.
The majority of readers i am sure do not mind paying taxes if they get the benefits,so there has to be a link between taxes paid and benefits received.The link between taxes and benefits in the UK is broken,has been for many years.
Taxes are levied on two sources of income (1) Earned and (2) Unearned.The UK government cannot distinguish between the two, as a result it charges the same tax rate.
Someone doing manual work like a bricklayer will pay the same tax rate as a Landlord who receives rent which is unearned income.The tax system should be fair and just.The burden of taxes should fall on those who afford the most and on unearned income.
The UK tax regime allows big business and wealthy individuals legitimate loopholes specially designed to encourage them to invest here,and pay very little taxes sometimes less than 2%.The taxes not collected from those who should pay the most,but pay the least,means that the money not collected is put on those ordinary people,so the poorest in UK society end up paying the most taxes in percentage terms.
This tax system in UK is known as just and fair system ?.We will show in future articles a fairer and just tax system,so that those who earn the most will pay the most.
The UK tax system is a shambles,hard to collect,difficult to understand,12000+ pages and more added every year.A whole industry of accountants,lawyers,advisors has grown up to help wealthy people and big business to evade/avoid/their full tax liability.
Despite success governments using the mantra of low taxes to get themselves elected,the overrall tax burdon on the UK population has remained between 35-40% of GDP.Also in the UK we pay the most types of taxes in the EU and get the least amount for our tax money.In the UK this is known as just and fair tax system.
The UK tax Authority's slogan to the people is tax should not be taxing.The real advertisement of the UK tax office is we will tax less the rich at the expense of the poor,so pay up or else?.we send the tax mafia in the UK known as the Inland Revenue
Kind Regards
Tiger Moto

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