Only if you maintain the current level of government spending, which, as shouldn't come as a surprise to many here, I believe could and should be cut "astronomically". The long term affect would be that many wealthy people would move here, and wealthy people spend quite a bit of money, which would result in increased sales tax revenue. .
I'm not in favour of a flat rate tax and higher sales taxes but your points above don't make sense.Hmmm... so what more public expenditure would you cut exactly? If it's salaries, don't you think that those public servants not currently availing of Family Income Supplement would so so? Or would you cut that too? Wealthy people spend quite a bit of money alright - but less proportionately than those that earn less than them. Back to the drawing board with that one.
What makes you think it's the lower paid who spend proportionately more of their income on VATable items? A large proportion of their income must go on items not attracting VAT - accommodation, food, childrens clothes...The replacement of income tax with a sales tax would disproportionately affect those who spend proportionately more of their income on items subject to a sales tax - i.e. the lower paid.
What makes you think it's the lower paid who spend proportionately more of their income on VATable items? A large proportion of their income must go on items not attracting VAT - accommodation, food, childrens clothes...
This paper for a start ...
[broken link removed]
I agree, that it is unlikely to happen from top down. But I believe that if the western world continues as it has, then the whole system will fall apart and the changes, i.e. massive government spending cuts, will have to be introduced, there will be no choice in the matter.It would be lovely to wave a magic wand and arrive at this situation, however I'd imagine there would literally be blood on the streets if this was implemented. Given the nature of politics here and the voting system, no political party would even consider it. Finally, if it was implemented, then IMO it would only be a matter of time before the old ways crept back in....a td getting a new road built in his constituency etc etc.
Sadly, I think that all we can hope for is reduced government spending on a gradual scale, but I have my doubts here too
I would start by cutting out entire government departments, there are way too many that at the moment simply cannot be afforded, and even in good times are completely unnecessary; wages and welfare would also be cut.Hmmm... so what more public expenditure would you cut exactly? If it's salaries, don't you think that those public servants not currently availing of Family Income Supplement would so so? Or would you cut that too? Wealthy people spend quite a bit of money alright - but less proportionately than those that earn less than them. Back to the drawing board with that one.
HahahahahahahaAh, those sages of credibility - the esri - the guys who gave us such doozy's as the 'soft landing' and who predicted in 2008 that we would have 3.75% growth per annum for the next 9 years.
I agree, that it is unlikely to happen from top down. But I believe that if the western world continues as it has, then the whole system will fall apart and the changes, i.e. massive government spending cuts, will have to be introduced, there will be no choice in the matter.
I see a war against China before that happens. The West will default 100% on bonds held by the Chinese (only) which would dramatically strenghten their balance sheets...if enough countries came on board then borrowing/lending would resume afterwards with little change. Of course the Chinese would be put back by half a century. Conspiracy theory for sure, but aren't we kinda due a war?
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