The biggest problems with taxes:
- rate too high
- too many rates
- too many exemptions
- too complex
More tax types
I think we need a range of taxes, if you narrow it to too few it allows to much advantage to some and disadvantage to others.
Keep it simple
Simple, universal, minimal or no exemptions. Flat rates.
Keep it Low
The lower each tax rate, the less likely people will try and avoid that tax.
GST, PAYE, CGT, company tax, land tax and transaction tax, fuel tax, and alcohol and tobacco excise tax – reach as wide as possible, as low as possible (except for tobacco and maybe alcohol), and as low administration as possible.
I’m just plucking numbers out of the air, but starting with GST as it is here’s a stab:
- GST 15% on everything
- PAYE first 15k tax free, 15% thereafter
- Company tax 15% on everything
- CGT 15% on everything
- Land tax 1% per year on everything perhaps with a tax free threshold
- Transaction tax 0.1% on everything
- Fuel tax to cover wider costs
- Alcohol, tobacco and gambling at levels to discourage overuse
They would need balancing and adjusting to ensure sufficient revenue.
In addition the whole benefit system should be simplified, and a priority should be put on controlling government spending and encouraging business development, employment and productivity.
Simple, comprehensive, low.