One of the criticisms of my solution of cutting the deficit by closing the tax gap is that some of the gap relates to businesses or individuals that go bankrupt. Many neoliberals have said that it is impossible to collect these amounts.
Well, that’s sophistry. It’s not impossible, it’s just not currently possible with this idiotic Coalition in power.
Where debts relate to monies owed to The State, we will exclude these from being written off when an individual goes bankrupt or enters a voluntary credit arrangement. They will then have the full amount of tax put on their tax code for the next year and collected through PAYE.
If they fail to pay off the amount in full, they will be declared bankrupt again and the money will be rolled over once more. This process will be repeated until the tax dodger has paid back their debt to society in full.
The problem with neoliberals is that they don’t think about what is right. It’s morally wrong to not pay taxes you owe and then go bankrupt. Bankruptcy is a privilege provided by The State and it should be able to ignore it when it chooses.
Also, anybody declared bankrupt should be automatically registered be registered as an organ donor.