A New Tax System: Summary

If you’re still with me you might be familiar with my last few posts describing my idea of a simplified tax system. Basically, we tax transactions of money in exchange for goods and services, between two tax paying entities . The tax consists of two components:

A New tax System: Problems and Pitfalls

Despite all the brilliant-ness of this tax system, it has some shortcomings. Here I will try to cover all the problems I can think of before anyone else points them out!

The Rich are not singled out

One is that there is still argument that the rate at which the rich pay tax should be higher than for lower income people. This system does not address that except by allowing for a higher D-Factor on transactions favoured by the rich.

A New Tax System: Possible Scenarios

Previously I discussed the selection of appropriate D-Factor values. In this post I will go over in more detail some of the unusual types of payments we make and explain how this tax system applies to those payments. I won’t talk about the standard payment for goods and services as they are straight-forward enough.

A New Tax System: Selecting D-Factors

As I mentioned earlier, the system would allow for pre-sets. A complete set of D-Factors could be defined that was friendly to a particular sector of society. Different pre-sets could apply when economic conditions demand or allow them.

A New tax System: Transitioning from Old to New

I have now described the theory and practice of this new tax system. Here I will clarify how we can integrate the system seamlessly with the old system.

Whenever there are changes to the tax system, you always find people who say “We’re worse off now than before!” Yeah well, you can’t please everybody all the time. And that’s usually because the changes are too abrupt. The government decides to tax him less and her more after July 1, so the changes will be sudden and potentially disruptive.

A New Tax System: In Practice

Previously I wrote about the theory of a simple tax system. This time I’ll talk about the practical details and provide examples of the transactions to which the tax system can apply. It’s simple so there aren’t a lot of them.

A New Tax System: The Theory

Last time I introduced the need for a fairer and simpler tax system and explained the benefits of an idea of mine. In this post I’ll explain how it works.

A New Tax System: Introduction

With nearly every election and federal budget delivery comes with a renewed campaign to overhaul the tax system. Some highly paid bureaucrat will publish a report with his name as the title, recommending a bunch of complex changes to “improve” the tax system. Up pop catchy new names for these new taxes. Deficit Tax. Carbon Tax. Yet Another Tax. Yet another special case of revenue collection with its own peculiarities to administer. Let’s not do this. The tax system is a dog’s breakfast.