Why do we pay tax. Is there any need to pay tax. There has always been a requirement to pay tax and there always will be. The issue is the tax fair and do I get value for money.
Unfortunatly we can no longer say that taxation is fair. The average annual salary in the UK is £30 000 per annum. The tax paid is £6219 per person. 20.73% of your salary.
But lets look at Amazon, their turnover is £ 8.8 billion and they paid £4.6 million in corporation tax. 0.05% of turnover. Tesco turn over £54 billion and they only paid £ 176 million in corporation tax. 3.25% of turnover. Starbucks turnover is £380 million and they paid £3.3 million in corporation tax. 0.86% of turnover. Boots the Chemist has gone one better and simply avoided £1.2 billion in UK taxes since “moving” the company to Switzerland.
Hmmmmm. Why the difference. Simple none of us can use offshore tax havens, none of us can work here but actually be based in a tax haven. Lets see who really pays the tax in the UK.
Total tax paid in 2018/19 was £776 billion made up of:
Personal income and Capital tax: £260 billion. That’s you.
National Insurance: £137 billion. That’s you.
Indirect Taxes (aka as VAT, petrol duty etc): £329 billion. That’s you.
Business and other revenue: £ 50 billion. 6.44% is paid by them.
There is no point be-labouring the point re personal tax dodgers, a short foray into some Daily Mail back copies will furnish you with all the details.
The point to note is the richer you are personally and corporately, the less tax you pay while enjoying all the trapping of the civilised countries you inhabit. There is no coincidence that the political classes somehow or other just never seem to be able to resolve this thorny issue.
The other question is, are our hard earned taxes sensibly spent. It is an amazing situation when supranational organisations can dictate what a national government has to pay, 2% of GDP on defence, 2% on foreign aid, £20 billion as club fee for the great European project. Our divorce bill to the EU is £39 billion – this is a mind numbingly large sum of money for a country that has debts of £ xxxx, that has an annual deficit of £xxx . We have to put this into perspective: It costs approxamatly £250 million to build a state of the art hospital – as a nation we are sacrificing 156 new hospitals by paying this bill. Why? What do we get in return? The right to sell one lorry load of goods to the EU, so they can sell us two in return. We don’t pay China, the USA, New Zeland or any other country so we can buy or sell them goods.
Foreign aid is another strange anomoliy – £xxx to China, £xxx to India, £xxx to Nigeria – the most corrupt country in the world.
Our welfare bill is massive, pensions make up a healthy slice at £111 billion. Un reasonably public pensions need to be reduced and eliminated for the future, we have to find a way where we can look after the elderly somehow within their monthly pension allowance.
The rest of the welfare bill amounts to £153 billion. There are two main parts to this expenditure – Government subsidy for large corporates who do not pay a living wage and payments to people who are actually unable to work or who won’t.
The Reform Party philosophy around taxation is everybody takes on a fair share of the burden according to your income. This covers individuals as well as companies – the more you earn the more you pay but there must be a limit to what an individual pays. All corporations will pay tax in the UK – if they do not they will be very heavily penalised until they learn to do so.
In terms of our expenditure we will run our public budgets no differently to the way we run our budgets at home. We will spend no more than we earn and every penny delivers value for money. We will have no qualms in cutting expenditure when it returns no or very low benefits but we will also be pragmatic and understand that there will always be unemployment in this country but we will use every individuals skills while on the dole in what ever form to benefit and enhance the public good.