Income tax

The Government put taxes on things that they do not want you to have. For example, it's bad to smoke so they put extra tax on it. It's bad to drink ... more taxes might discourage you. Everyone is familiar with this idea. Why then do they tax people who earn an income? Why does this taxation increase the more you earn? It is almost as if the Government hasn't considered the huge contradiction at the heart of any budget issued within the last 30 years or so.

Whether you like it or not the consequence of taxing income is to discourage the worker earning it.

The supposed idea behind this taxation is to "redistribute wealth" from the rich down to the poor. However most people know one thing about the super rich, they don't work and do not have a job or income in anything like the sense you and I might.

Really rich people, the target of any sensible wealth redistribution policy, do not flinch at the idea of an income tax. It is those who aspire to wealth who should worry about how it is going to come-in. The really rich do not require wealth to come-in, they already have it. In-come is not their concern. Wealth protection is more important. They would like to keep others out.

The result of income tax is to calcifiy the social order. Those who want to get wealth in to their lives are hampered by it. Social mobility is significantly harder if everytime you increase your money the Government steals more of it.

I once did a show about a guy called Henry George. His idea was that you should tax the land. Perhaps that's a better way forward, I'm not sure. There are problems with all applications of state power. I don't  think taxing people who earn money is a good idea though, in a globalised marketplace it will result in a nation of dissaffected unhappy workers who cannot compete with others who have a better taxation system.

NM

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