Tax bore
They are at it again. Political think-tanks suggesting the tax system should be leveled to one basic rate.
This time it is the Christian Democrats pretending that they have come up with a revolutionary new idea. And the whole circus starts up again.
Christian Democrat leader and prime minister Jan Peter Balkenende is asked for his reaction and replies: ‘It is an extremely interesting idea’.
Then there is a bout of media confusion about whether the government is willing to reduce the generous tax deductions on mortgage interest payments.
‘The issue is no longer taboo,’ said one newspaper this morning, while another wrote: ‘Balkenende rules out changes to existing system.’ Experts are rolled out to comment, with many saying a flat tax rate is not the answer as it inevitably favours high earners. And we are left where we started.
But does the tax system need to be simplified? Yes, most definitely. There are all kinds of deductions which favour the wealthier. It’s a bit like a plate of spaghetti. But let’s have a convincing plan and the political guts to do it.
Experts have been saying for years that income tax should be scrapped in favour of consumer and pollution taxes. What we don’t want is intelligent people in think-tanks regurgitating old ideas and wasting all of our time.
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