Monday, September 12, 2005

a flat tax

The latest British tax guide has doubled in size to 9000 pages, despite the government claiming to simplify it. More and more groups are despairing of this quagmire and talking about a flat tax - nobody pays up to a certain amount, then everyone pays the same. The argument is that this encourages growth and removes bureaucracy and avoidance. See here for a summary.

I wonder, would a flat tax be a step toward land rent? Might it allow people to see more clearly? If taxes become simple it might be much easier to shift them from production (which discourages work) to land (which is neutral)? In my view, complexity is the enemy of clear thought, and thus the enemy of land rent Perhaps the first step to thinking clearly is to simplify everything, e.g. with a flat tax?

2 Comments:

Blogger Trail Seeker said...

Grass root folks here tried to implement a flat tax for our state in the past, never happened.

11:38 PM  
Blogger Chris Tolworthy said...

I don't think the flat tax has many benefits, but I like anything that simplifies tax AND gets people talking about fundamental tax topics.

7:38 AM  

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