Tuesday, March 13, 2007

Oink Oink ...

I was reading this petition on abolishing inheritance tax. It's not one that I agree with, seeing that inheritance tax has an important role to play in a society.

However I did note the following:-

"Inheritance tax is an immoral form of taxation that penalises hard work and thrift."

and

"millions of households have been drawn into the death duty trap by steadily rising property prices"

Steadily rising property prices ... oh, that's the hard work and thrift bit is it? There's me thinking that most property purchases involved speculation ... doh.

As for the "millions of hard-pressed families" - well the threshold is currently £285,000 and you have to really reserve moral outrage for the 2.7 billion people living on about a £1 a day.

I'm trying to feel sympathy ... nah, just not happening.

2 comments:

Tony said...

As a thought exercise recently I was discussing with a friend a tax regime where there were no taxes at all, other than inheritance tax, which was set at 100%.

Obviously it would be impractical to actually make it happen, but ignoring that and playing armchair economists with it over a few drinks leads to some interesting scenarios...h

swardley said...

Actually, I was also having a conversation on tax regimes and whether it would be possible to simplify all taxation on revenue (where all forms of income whether personal, corporate and whether earnings, sales, capital gains or other counts as revenue).

Naturally, this causes initial significant problems, massive re-pricing, inflationary effects etc but the question was more whether an alternative regime can be established in the long run.

As a result, I'm somewhat leaning towards a system whereby everyone of voting age gets paid a minimal tax free state pension and a flat rate tax is levied on gross revenue whether personal or corporate.

Yes, I understand the problems with this - however in the long run, it does seem reasonable.

Sounds like VAT? Yes, just no reclaiming.

Doesn't that multiply the cost of complex items comprised of many different components sourced from different areas? Yes.

Doesn't that severely impact share speculation or currency arbritage? Yes.

Didn't say there weren't negative impacts. Fortunately I don't get to play with things like this for real.

I like thought exercises ... even If I'm completely wrong.