Hear Hear

I would like to concur with Geriant Jones, Private Client Partner at Reeves regarding the need for a simpler and more straightforward tax system.  In my view is it a key part of turning around the UK.

His suggestions at www.reeves.co/towards-a-better-tax-system (yes, that is www.reeves.co) show the clarity of solution that can be achieved by an expert who is outside of an entrenched organisation and thus has no political rearside to protect.

Of course, no sooner does someone come up with a simple solution, than the naysayers wade in to proclaim it manifestly unfair in some way, in this case commenting on the Mirrlees Review at www.guardian.co.uk/money/2010/nov/10/uk-tax-system-mirrlees-review… though I suppose you might reason that they wouldn’t get their name into the news headlines if they offered purely constructive ideas.

Sometimes a crisis can be good for stirring up both innovative ideas and the desire for change that allows us to contemplate them.  My sense is that it is a government’s role not to shackle its people, but to inspire them.  It is of little surprise to me that Germany, whose industry is famed for its efficiency, has a Tax Code which is one-fifth the size of the UK.

If the government really does bring in radical change to the Tax system, then among other benefits it will free a little time (and worry) for each of the circa 5 million people who run businesses in the UK, increasing innovation, collective productivity and national GDP.  If the annual Tax Take remains at 37% of GDP whilst the bureaucratic burden is lightened, then the benefit of that tax will become clearer and clearer to all concerned.

I am strongly in favour of simple systems in our government as well as in our businesses and those who are new to this blog may like to read some of my previous thoughts on these subjects at http://davidjfoster.info/2008/03/government-harassment/, http://davidjfoster.info/2008/05/simple-systems/ and http://davidjfoster.info/2008/12/employment-legislation/.

Comments are closed.