England’s Tax System is Too Complicated!
Doing tax returns is very complicated, so much so that people even have to hire bookkeepers or accountants to fill everything in for them. This vegan accountancy firm has a lovely suite of pages of plain-English help.
England seems to have mastered the art of the most complicated tax system in the world:
- Income Tax
- VAT (valued added tax) – different for hot and cold food, and clothes for children and adults
- National Insurance (looks like a tax)
- Capital Gains Tax
- Inheritance Tax
- Council Tax
- Stamp Duty
One wonders if this is an example of what the later writer David Graeber called out – making things complicated in order to create ‘bullshit jobs’ that are not really needed. But skews job figures, and gives work to friends and colleagues.
Most people can spend hours to file a single return, when they could be spending that time running or improving a business. Other people fear earning above a certain amount, fear making mistakes or put off tasks, thinking the wrong information could lead to penalties and fines.
Tax changes means we all have to start learning all over again, and this in turn can affect whether people employ staff. People may miss out on claiming benefits due to tax laws, and carers also often don’t realise they are entitled to financial help, even if they work part-time. A café owner spends evenings on VAT, rather than menus and suppliers.
The obvious solution is rip up the rule book, and start again. Merging income tax bands and combining different taxes, would be a lot easier. Abroad, some countries use a flat tax, where everyone pays the same rate. It’s popular, simple and avoids tax dodging.
Estonia (a country with beautiful forests) pays a flat rate tax of 20%, and is a highly-developed country and enjoys the world’s 12th best standard of living (safe, good public transport, low pollution and excellent healthcare and broadband). The cost of living is also lower than most western European countries.
