THE GEORGE TAX
Current taxation systems throughout the world were developed for a physical currency transaction, this means it is a tax system that can easily be avoided and is inherently corrupt in that the richest can avoid tax through highly paid Lawyers and Accountants finding loopholes in the system, and cash only business can avoid tax by not declaring transactions.
A digital age taxation system would allow the Government to collect tax electronically at a centralised point of transaction, and would also allow the government to deploy algorithms to calculate a 'Real Time' tax rate which could adjust dynamically to the expenditure requirements of government, rather than the government being forced to go cap in hand to the bond markets or raise taxation retrospectively on budget day.
IMPLEMENTING THE GEARGE TAX
The starting point for a digital age taxation system would be to abolish the entire UK taxation and cash transaction system and start from scratch.
Algorithms would need to be formulated (A.) to determine the value of all financial transactions carried out in the UK and between the UK and Overseas and (B.) Projected governmental expenditure for the year calculated in real time.
To collect THE GEORGE TAX, centralised electronic transaction hubs would be built and developed throughout the UK and each of these would be connected in a network to each other and to a master hub connected to the banks where tax is collected as a percentage of each transaction passing through the hub.
THE GEORGE TAX is essentially a transaction tax. Whenever a financial transaction is carried out, a percentage of that transaction is taken as a tax, the tax percentage is calculated in 'Real Time' and would be variable by miniscule percentage movements using an algorithm calculating government spending requirements for the tax year against projected UK financial transactions for the tax year.
All financial transactions including share dealing, bank to bank transfers etc.. would have to pass through the hubs by law, with serious penalties for non compliance.
For small transactions, pre paid cash cards containing say £10 in value could be purchased 'TAX PAID' at shops and supermarkets etc.. these could then be used to pay for small purchases in store and at temporary outlets and outdoor events etc. where terminal connections to the centralised transaction hubs cant be made.
The cards could possibly be top up cards or disposable depending on security issues, but this would negate the need for cash in today’s society, it would also mean that transactions could be carried out without a need for a connection to the main hubs or to a power source as payment tills could be battery or solar powered and would not need a phone line, all transactions taken through these cards would then be uploaded at a later date through a connected terminal to the main transaction hubs.
The benefits of THE GEORGE TAX, are that it is a simple one tax system, it can be collected at the time of transaction, it will reduce business costs significantly, would increase tax collection to near 100%, would be 100% fair, would reduce government expenditure significantly, and would reduce the overall tax burden on the individual significantly, cutting red tape and tax loop holes to pretty much zero.
THE GEORGE TAX is a progressive digital age tax system, that is simple and effective, it just needs a progressive and visionary government to implement it in its simplest form.
The basic rule is to keep it very simple, tax the transaction at a single real time rate, a one tax system.
I can envisage an extremely low tax rate of a percentage of 1% using THE GEORGE TAX , every single financial transaction in the UK and between the UK and Overseas would be taxed at the time of transaction, this amounts to a staggeringly huge sum of money available to be taxed against.
Because the tax is a transaction tax, both sides of the transaction are taxed, therefore a transaction of £1.00 is actually worth £2.00 for taxable purposes.
The benefits to society and the UK economy would be immeasurable!
THE GEORGE TAX – Should be this governments legacy to this great nation, i give my idea for FREE, in the hope that somebody with the vision of progress will take it forward.
Why call it the THE GEORGE TAX?
Well its my last name, its my idea, so why not! 😉
Why is this idea important?
My idea will revolutionise this country, will increase profitability, increase productivity, decrease red tape, will reduce individual taxation, will simplify the tax system, will make tax fair for all, will allow great britain to become a global financial power again, will increases competitiveness, will encourage entrepreneurs and business.
Do i really need to go on ?????, anyone with an ounce of common sense can see the massive positive consequences that THE GEORGE TAX would bring to the table.
Lets get on with it, our children depend on it!