Another one I put up on MyT, which seems to be going reasonably well there – perhaps the trolls haven’t woken up, yet.
We are informed that a tax on the food we eat is being ‘considered.’ This at the same time as a rise in the rate of VAT to 20% is also mooted. We are also informed that members of parliament have voted themselves an increase in pay while millions of the people who pay for that increase are suffering pay cuts, or cuts in working hours that reduce their income significantly. Oh, Yes, and the same members of parliament are demanding that they travel, free, in First Class on the trains because, among other reasons, ‘there is not enough leg-room in standard class’ and, in standard class, ‘ it is not safe for a woman travelling alone at night.’
The increases in taxation are proposed ‘to cut the government deficit.’ Before asking whether there might not be other ways to decrease ‘government spending,’ a small discussion about the reasons for paying taxes might be worthwhile.
Why do we pay tax? I would suggest that, as a society, we agree to pay a certain amount of our income in taxation to fund those services that we, as a society, deem to be necessary for the efficient working of our society in our own best interest. We have also generally agreed that, as well as efficient, such services should be provided in a way that all of us are assured that our treatment in the provision of these services is equitable and fair. The key principle is ‘consent.’ We consent to pay taxes which we require, or should require, that those we elect to govern our society use in the fairest and most efficient way possible to manage our society on our behalf.
So, bearing the principle of ‘consent’ in mind, is there a way to reduce the government deficit without the imposition of more taxation? I would suggest that there is and that it is as simple as the application of the Micawber Principle:
‘Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.*’
Instead of increasing taxation, the blindingly obvious solution is to reduce expenditure. Lower expenditure, lower demand for taxes, increased opportunity for discretionary spending, increased demand for goods and services, increase in economic activity, more tax income, increased ability to pay for essential services… What, pray, is so difficult to understand?
Mr Micawber, of course, continues: ‘The blossom is blighted, the leaf is withered, the god of day goes down upon the dreary scene, and, in short, you are for ever floored.’ Which would seem to be a pretty good summation of the prospects for this country unless MPs and wannabe MPs are given the message:
‘If you ain’t got it, don’t bleedin-well spend it!’
* Translation for those who have no idea what ‘nineteen nineteen six’ might mean.
‘Annual income twenty pounds, annual expenditure nineteen pounds ninety-seven and a half pence, result happiness. Annual income twenty pounds, annual expenditure twenty pounds two and a half pence, result
Boadicea's Chariot 
Bravo, IMHO it makes little sense to duplicate blogs from MyT here. 🙂
Janus. The discussion here doesn’t suffer the same degree of interference of trolls and knee-jerk, incontinent bigots as is the case of MyT. I don’t copy everything I write there – just some things in which I would be interested in some informed discussion.
… Janus, it’s Bravo’s post, to do with as he likes … 😀
Bearsy, like you, I was expressing an opinion….. 😮
Bravo, on topic: the imposition of VAT on groceries is probably unavoidable within the EU. In Vikingland it is 25%, the same as on other goods and services. Horrible. But here too the basic cost of groceries is much higher than elsewhere in the EU because the distributive trades have to pay such high wages so that their workers can afford the higher taxes – the vicious downward spiral towards Micawbr’s misery. The German-owned supermarkets, Lidl and Aldi do a roaring trade because they can offset their high costs in DK with much higher margins back home. So eventually the free market rules will force DK to moderate its tax regime.
What this works out to is, say, a 40% tax on income, then another 25% tax on what’s left. (Which, though my maths may be flawed, adds up to a total of 55%, I think.)
Thanks for your post, Bravo. It is horrifying that we have a government that seems incapable of cutting its expenditure. It can only think in terms of new taxes. Then we will be told that state benefits are not enough to pay for food… and so it goes on. There are so many cuts that could be made, if you didn’t have a client state to pander to.
The point is, that taxes may only be raised with the consent of the taxed. Withhold that consent…
I would like to express my opinion too re duplicate posts. I like it and I value you doing it Bravo. Although invited by the mediators to rejoin MyT they appear not to be able to reinstate my account in its original name. As such, I have no real interest at the moment in rejoining.
I do not enjoy the filth, scum, trolling and general mudslinging employed there.
so I welcome the blogs to which I may contribute here. Thank you!
Bravo I thought the very same thing about Govt expenses. I do hope the electorate vote out incumbents, Aegean stables come to mind!
I do think there are some grocery items that could join those already taxed. (Soft drinks, crisps, sweets) Biscuits and bottled water come to mind immediately as being totally superfluous to a good diet and retailers are already adept at sorting the categories.
But whilst they are still employing diversity officers etc there is hardly a pressing need, you really do wonder what planet they are on.
Equally, I cannot understand why people do not grow more food, flat dwellers should dig up parks for allotments! The cost of food in the UK is ruinous.
I don’t think people help themselves one little bit, apathy appears to reign supreme.
It is the same here, the poor just parasite at the free food banks but will not help at the community gardens that produce the veg for them. The middle class do gooders do it all. Our garden club is heavily involved, I refuse to help, I have no intention of feeding anyone that will not lift finger to help feed themselves, let them starve. They are all able bodied, with numerous children and unemployed so one can quite see what they do for a pastime!
Sorry, wandering about a bit but you know full well what I mean!
Cut the costs, all costs, any costs!
I’m also pleased that you post here, Bravo. Like Christina, I’m a tad fed up with mod-eaten blogs and the personal arguments that encroach on almost every blog to the detriment of a decent debate.
Theoretically, taxes are raised by the consent of the electorate. The Commons had control of the purse strings by the end of the 1300s, and they didn’t just open that purse every time the monarch demanded… or if they did they were very careful about how much they allowed the monarch to have. Now, of course, The Commons use their power as if they were an Absolute monarchy, only paying lip-service to the notion of ‘consent’ and ‘democracy’.
One can, theoretically, withhold that consent – but in practical terms how would one do it? Unlike earlier systems where the tax-collector had to go knocking on doors to get the money, taxes are collected at source. One won’t get far by demanding that one’s employer doesn’t stop Income Tax or that the retailer doesn’t add on VAT.
I suppose the only answer would be to try to start a campaign of some kind, the trouble with that is that, in general, people are so apathetic. I look at the riots in Iran, in Greece and even in France and wonder whether anything would ever rouse the British Public to such anger. Sadly, I think not.
We have 10% GST here, it is not imposed on food, except of the sort that Christina mentions – the ‘junk variety’.
Personally, I think it outrageous that food should be taxed. But then I don’t think that any ‘essential’ item should be taxed and if governments can’t manage on what they collect – they should take a long hard look at what they’re spending taxes on.
But we’re back to the same problem that has beset the ‘Ruled’ since time immemorial: how do we keep the ‘Rulers’ under control?
Boadicea, thanks for that enlightening historical perspective. You illuminate the point I’m trying to make. The government in UK is, indeed, out of control. We need to institute some sort of oversight procedure – UKIP seem to be the only party that addresses this point with their proposals for the increased use of referendums on Swiss lines.
Mid-term elections would be another good check on the absolute power of the government, but I believe that the only way that anything might even begin to be done is through a popular protest movement to sweep away the current system, hence the reference to our own ‘Orange’ revolution. Or, perhaps we need to re-run the ‘Glorious Revolution.’
You also put your finger on the main problem: apathy rules. (Well, at least, I think it does, but I can’t be bothered to find out.)
Bravo – Good blog. The point is well made. There is one tiny problem and that is that MPs are elected to do four things: legislate, approve tax raising measures and represent their party interests; oh, and finally to represent their constituents.
I would like to see it become an obligation for parliament to work to reduce the level of taxation and reign in uncontrolled spending and wastage of taxpayer’s money on large white-elephants and over-ambitious schemes.
No! Wrong!
http://www.parliament.uk/about/how/members/mps.cfm
Pity a few more of them don’t read their own website!
Ah, Boadicea, you beat me to it.
Boa, one would think a non-academic blogger would be able to google more accutarely, what?