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no tax for employees paid by tax funds to reduce wasteful handling fees

Comment 7th July 2010

For those employees who are paid directly from tax e.g. NHS or civil service employees it makes no sense to raise tax to pay them and then tax them part of their wage — this reults in doubling handling of the tax revenue and as everyone in business no no LEAN process is ever designed to double handle goods or revneue

 

a simpler and more effeicent system would be to slowly over time reduce those in public sector to a 0% tax rate — their wages would of course be less than those in private sector but a focus on NET not gross pay equality qould ensure fairness

 

this could be achieved by a year on year pay freeze with comensatatory reduction in tax rate in line with inflation to ensure net wage increase

 

This is a radical rething but a review of the saving generated by a smaller Inland revenue tax would no only save on losses by double handling revenue but also alow effeicencies in reducing size of IR, sending out unneeded tax codes etc

 

Why does this matter?

This would allow a massive cost saving and at the same time provide a very positive incentive to entice people to the public sector – we all like the idea of no tax- without generating cost increases ( in fact giving an opportuntiy to save costs)

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