On or around Wed, 24 Aug 2005 08:19:53 +0000 (UTC), beamendsltd
<email@example.com> enlightened us thusly:
>In message <firstname.lastname@example.org>
> "Ali" <email@example.com> wrote:
>> "Lofty" <Lofty76@spamlessyahoo.co.uk> wrote in message
>> > Aren't you all forgetting its the GOVERNMENTS TAX on fuel that is
>> > responsible for our stupidly inflated prices.
>> > Approximately 75% of the cost of a litre of fuel is TAX!!
>> > Rather than penalise companies that do all the work of extraction,
>> > processing, marketing and delivery, consider more direct action that
>> > the government will have to take notice of.
>> > But we have tried this before, and nobody really gives a toss, I was
>> > at the last round of fuel protests and hardly anyone turned up.
>> > The price of fuel is directly proportional to the majority of the
>> > country's lack of interest.
>> > Quit moaning, get off your backsides and do something positive - lobby
>> > your MP big time, and be there at the next show of support.
>> HERE HERE!!
>> I just cant believe that the people cant see the wood for the trees!!!!
>So which alternative way do you prefer to pay the tax? Increase VAT?
>Increase Income Tax?
I'm not in favour of reducing income tax to very low levels and then putting
the tax all on purchases. There needs to be balance. Granted, people with
high incomes are more likely to spend it and thus pay more purchase tax, but
weighting it too far in favour of purchase tax is self-defeating in many
ways - low-paid workers have to be supported by state subsidy, for example,
in order to be able to afford to live. With higher income tax on
medium-to-high incomes, and a bit less on purchases, you'd not need so much
in the way of benefits for unemployed and low-wage jobs.
as to very-high incomes, well... there's a good argument in favour of taxing
them the same - people with 6-figure incomes can afford to move to a country
with a favourable tax regime, and many do. if you tried to put a super-tax
of say 90% on all income over 500,000 then I venture to suggest you'd
collect next-to-sod-all - arrange it that all income is taxed at say 25-30%
(guessing at figures, here) for example, above a threshold level of
something around 8 grand a year (which is a pretty low wage these days)
would, I suspect, raise more revenue - people with big incomes would either
not move away or would even move here from elsewhere. I don't know what the
figures are, and whether for example 30% is low enough to be attractive. 30%
tax on billions is better than 90% on SFA.
coming back to fuel prices... raising the fuel price to very high levels is
no help in preventing waste of fuel - people will pay, then demand pay
increases; transport of goods will get more expensive leading to inflation
of retail prices, etc. etc. Making fuel very expensive only hurts those
least able to pay; while those who can afford a vehicle with a 12-mpg thirst
for everyday use (rather than as an occasional toy) can afford to fill it
Austin Shackles. www.ddol-las.net
my opinions are just that
"Festina Lente" (Hasten slowly) Suetonius (c.70-c.140) Augustus, 25