+- Scivillage.com Casual Discussion Science Forum (https://www.scivillage.com)
+-- Forum: Culture (https://www.scivillage.com/forum-49.html)
+--- Forum: Law & Ethics (https://www.scivillage.com/forum-105.html)
+--- Thread: Check⁉️ Tax Depreciation Society (/thread-16849.html)
Tax Depreciation Society - stryder - Nov 18, 2024
One of the main problems in the UK with the Labour Party taking over is that they've decided to raise taxes. What most of the world probably doesn't know though is that in the UK, taxation has risen again and again and again. In fact it's been a trend since before the 2008 Banking Crash.
The problem with constantly raising taxes is that it leads to stagnation, as it causes businesses to default and go into recievership. That's not good in the economy overall, ideally what a healthy vibrant economny should be trying to achieve is growth, that way any financial needs can come directly from the boost given by growth rather than tapping taxes at higher and higher rates.
For this reason, I've considered that really what the country needs to be doing is reducing taxation over time.
Any time they intend to raise taxes, they should really have a plan in place to reduce the taxation back down over time,
Otherwise the raise should never be given the go ahead.
For that reason I'd been toying with a "Leap Tax Year" initially to try to reduce tax and increase economic growth. I used for simplicity sake VAT (Value Added Tax) as a hypothetical value to work with, however it can be extrapolated to all types of tax.
Current VAT in the UK is 20%.
In the first LC (Leap Cycle) of four LY's (Leap years), the taxation could be reduced LY1:20%, LY2:19% ,LY3:18%, LY4:17% (Mean: 18.5%)
In the next Leap cycle the tax is set back to the 20% minus an arbitary reduction, in this example 1% (19%) if the economy is growing. If there is stagnation (and monetary woes) the previous LC values are repeated. e.g. Economic growth = LY5:19%, LY6:18%, LY7:17%, LY8:16% (Mean: 17.5%) Economic Decline = LY5:20%, LY6:19% ,LY7:18%, LY8:17% (Mean: 18.5%)
Further cycle follows the above pattern either decreasing by 1% from the LC or duplicating the previous LC if in Economic Decline.
If 32 years pass the following would be true :
..... LY1 LY2 LY3 LY4 Mean
LC4.. 20% 19% 18% 17% 18.5%
LC8.. 19% 18% 17% 16% 17.5%
LC12 18% 17% 16% 15% 16.5%
LC16 17% 16% 15% 14% 15.5%
LC20 16% 15% 14% 13% 14.5%
LC24 15% 14% 13% 12% 13.5%
LC28 14% 13% 12% 11% 12.5%
LC32 13% 12% 11% 10% 11.5%
(32 year avg Mean 15%)
Key: LC=Leap Cycle LY=Leap Year
The idea is to continue reducing tax over time to maintain a stable economic growth, or stagnate the cycle if things get choppy but try to make sure growth is achieved rather than raise taxation. If taxes are to be raised back up, it should be stated how long it will take to bring them back down again and by how much.
This method can even be applied to import duty, although arbitary reduction amount shouldn't be as strong as a tax reduction that effect the citizens of the country (in other words if they get a 1% reduction per cycle, then the import duty might only get an arbitary 0.25% reduction per cycle). This would encourage greater trade over time.
It should be noted that while the mean percentages are mentioned per cycle, that the value itself might produce more or less tax depending on growth as well as "random" factors like how other operators are directly effecting trade.
RE: Tax Depreciation Society - C C - Nov 22, 2024
Innovative, perhaps, but for the Labour Party it's probably bureaucrats obstructing creative sounds with "la-la-la" singing and hands pressed firmly to the ears.