"Taxes are what we pay for civilized society"

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Jonathan Kay
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"Taxes are what we pay for civilized society"

There are problems in collecting all sorts of taxes in the near future, but those related to motoring need to change even more quickly than the rest.

From the IFS: "A road map for motoring taxation". Great data, rigorous analysis... and some proposals with option appraisals. 

Here's one slide that shows the scale of the political difficulty:

Jonathan

StevehS3
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I completely agree with the headline statement. However, nobody wants to pay more tax than they need (if you disagree just make a donation to HMRC). We all have a view on what is fair, although all too often it ends up being that someone other than you should be paying more. My view would be to lower most taxes for whilst people are alive so they can enjoy their money and spend more to drive the economy and create jobs (remember spent money attracts VAT, jobs attract income tax etc...). 
Inheritance tax is where I would make up the lossed revenue. Upon death I would tax the whole estate, including trusts if they are not taxed separately. The current threshold is so high that many pay no IHT and it's far too easy to avoid IHT all together by gifting it 7 years before death - so that would need a reform too.
I don't understand why so may object to IHT - even Tony Benn showed himself to be a IHT tax avoider.

Jonathan Kay
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Upon death I would tax the whole estate, including trusts if they are not taxed separately.

The estate or the recipients, which would allow more granular progressivity?

Jonathan

PS: This is the chapter I referred to when we were discussing SUVs.

Alan Reeves
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Well the argument that you have paid tax on the way to accumulating means that you should not be taxed again makes sense to me. Remembering also that one is paying tax on pension income.

Those who dont object to IHT probably dont have the funds to attract lots of tax on their departure ...

 

 

Golf Juliet Tango
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Taxation needs to have variety, otherwise legal avoidance is too easy. Ask any golfer if they would play a round with a single club (no, I don't play golf).

So tax separately, in diverse ways and try to ensure that one tax complents another (by which I mean that if one tax is minimised another rises).

I will certainly be paying a sum of IHT soon because my late father refused to plan. OK, it will release capital to me, I'm not objecting, just commenting. In due course, unless I spend the lot, there will be plenty of IHT on my estate because I have no direct descendants, my neice & nephew being my inheritors.

Stephen Hubbard

Democratic dissent is not disloyalty, it is a positive civic duty

Tony Whitley
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Have you thought of adopting? Asking for a friend...

StevehS3
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I think in this case the estate rather than the recipients, although obviously they would receive less because of the tax.

StevehS3
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We certainly have lots of variety. Think of a day in the life of a pound moving from company to company, shop to shop, pay packet to pay packet, pocket to pocket attracting income tax, CGT, VAT, Corp. Tax, Tax on dividends etc.

I think the IHT tax rate is high at 40% but is applied to relatively few and hence is very easy and often avoided. My suggestion is a lower rate applied to all with consideration to trusts. There is a tipping point whereby the higher per the tax rate the less is collected.

Wrightpayne
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Steve,

The only problem with that is people who pi$$ it up the wall pay nothing (ditto nursing care when old) whereas people who save and are careful with money all their lives have to pay.

Ian

DougBaker
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People who pi$$ it up the wall pay VAT on almost every penny spent. They probably also have more fun as well. The main reason any of us will pay IHT is house price increases which is a matter of luck not judgement.
StevehS3
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You need the parenting and education dept. for that Ian