I have scheduled this post to coincide with the Chancellors’ autumn statement.
A cautious man who is accustomed to the dangers of being an international tax expert, I have prepared this in the event of my untimely death.
Also, the economy is entirely predictable and I can calculate many future events with absolute certainty. So I might as well write it over Easter.
Firstly, I would like this to be known as Murphy Richards’ Budgetary Announcement on Taxation and Economics 2012 (MRBATE 2012). On twitter please feel free to use the hashtag #MRBATE to discuss what I am about to issue.
State of the economy
The economy is tanking on account of the lack of borrowing and the failure to borrow less by the government.
Tax receipts are down because the economy isn’t growing and it can only grow if the Chancellor taxes more by growing the economy. This can be achieved by growing the economy and increasing taxes.
Unlike neoliberal capitalism, Socialism understands the need for humans to be given direction by The State.
Without Socialism there will be no growth because people will follow their own disparate visions with great vigour, achieving nothing. Instead it is far better for The State to Courageously give its Vision to The Citizens.
By the time you read this you will be able to see that the new Socialist government in France has instantly set their economy on the path to growth by introducing tax rates that reclaim significant proportions of wealth for The State. Also, they have borrowed lots more money, creating more wealth.
This has set them on the path to discovering The Courageous Vision that I refer to in my book, The Joy of Being A Tax Expert, which will go on sale today at all ethical outlets (whether book shops or not). If the shop doesn’t stock it, it is an unethical shop and you should boycott it.
This Courageous Vision will unite The Citizens in their Mission of Courage to achieve The Courageous Vision of installing The State of Courage. The State of Courage being defined, of course, as The State that has the Courage to unite The Citizens in pursuit of The Courageous Vision.
As a tax expert, I have calculated that the tax gap will be exactly £167,206,398,288 pounds on 5 December 2012.
This is done on the basis of my highly accurate expectation gap calculation. My workings and data will be made widely available only to fully paid up members of The Justice for Taxes Network for their approval.
However, this gap could be closed instantly by passing my GRAPIST bill which would ensure that The State could collect this amount from whoever it decides should owe amounts totaling that amount.
The Coalition’s pathetic GAAR would raise less money. They say as much by saying that it won’t have any economic impact. Well, what’s the point in that? Anti avoidance legislation’s only purpose is to raise revenue.
It’s like the Chancellor doesn’t want his bill to disrupt the economy. Let’s not beat around the bush, his bill is pathetically tiny in magnitude.
Mine is far bigger, and more aesthetically pleasing, than George Osborne’s. If you don’t badger your MP to back it, then you’re simply not serious about tackling this huge issue.
In order to prevent tax avoidance, corporation tax should be put immediately up to 50% and VAT reduced to 10%. This is so that we can ensure that multi national corporations are taxed effectively on where their sales take place.
I expect this policy to land inflation on 2% exactly. Then the Bank of England’s new governor, George Entwistle, (the first time a middle aged white man has occupied the post) will be able to focus on regulating the banks.
This will save the financial sector, which we will then nationalise.
We will unilaterally impose unitary taxation and county-by-county reporting on all groups with any presence in the UK, which will help confirm the UK as the premier location for ethical businesses.
We expect other countries to shun businesses that leave these shores and will impose sanctions on any country that does not respect our morally correct position.
We will reintroduce Gordon Brown’s original vision of tax credits and abolish the personal allowance.
Capital gains tax will be abolished and all gains will be treated as income subject to income tax and NICs. There will be no reliefs introduced to mimic entrepreneurs relief, principal private residence relief, roll over relief, hold over relief, or any other neoliberal notion of “fairness”.
This will simplify tax by removing the capital / revenue distinction in income. However, for expenses we will need to retain the concept to prevent avoidance. No relief will be allowed for expenses of a capital nature and capital allowances will be abolished.
Inheritance tax will be raised to 100% and the nil rate band will be reduced to zero. Whilst the nil rate band will continue to be transferable between spouses and civil partners, the inter-spouse transfer exemption will be removed.
Following my recommendations to the Office of Tax Simplification, the concept of a Potentially Exempt Transfer will be abolished. All transfers will therefore be Chargeable Lifetime Transfers.
To counter the inability of wives to give their husbands share of their income, house husbands (and wives) will be treated as employees of their spouse. Tax credits will be extended to all stay at home spouses who work more than 14 hours a week and who submit accounts to HMRC showing how they have established an Ethical Market Value for their Labour.
Failure to do this will mean that the gift falls within the scope of inheritance tax and is taxed accordingly.
People who live together, regardless of personal relationship, will be treated in exactly the same way, thus creating parity between married couples and other people who happen to live together.
Yes, this includes minor children who will be taught, from the age of three, double entry accounting, ethics, elementary principles of personal taxation and fundamental economics by the newly formed Murphy Richards’ School of Accounting, Virtues, Income Legislation and Economics.
Stamp Duty Land Tax will be levied on a progressive basis, the percentage used being the value of the property purchased divided by £10,000. So SDLT will commence at 1% on properties costing more than £10k, 2% for £20k and so on.
This should discourage property prices in excess of £1m and help bring the housing market back within the reach of all.
This is a strong MRBATE containing good, sensible and ethical policies that will provide for growth and send a strong statement of our commitment to Justice For Taxes to the world.
I recommend it to all of you.
Murphy J Richards