Don’t tax production, tax consumption

Work-based income tax should be abolished, in favour of more tax on consumption.

Why does this idea matter?

Taxing according to ability to pay is often argued to be the fairest method. I would argue that income tax penalises the very thing that should be encouraged and rewarded: work, effort, achievement.

Furthermore, it is already well-established that the UK (let alone the rest of the world) is consuming more of the world's resources than the world can provide. There is therefore a strong case for encouraging people to reduce consumption (or penalise them for consuming too much).

work-based income tax is any tax on the proceeds of work, effort, achievement, such as income tax.

Consumption tax is any tax on top of the what we pay for something, such as VAT, sin taxes, motoring taxes, BBC licence fee, stamp duty land tax.

This proposal would not apply to taxes on income not derived from the proceeds of work, such as capital gains, benefits, bank interest, etc.

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