Originally posted by ramAnag
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Earnings related taxation is in many ways a flawed concept: move onto a consumption based taxation system and many of the flaws in the current system will be eliminated (as would be my job!!). No need for anti avoidance measures although no doubt there will be new ways found to get round a consumption tax. Have a basic flat rate tax on essentials such as food, clothes, housing etc and then a luxury tax on non essentials such as cars (although allow a tesco blue label car as an essential) electronics, holidays etc
A consumption based tax would be augmented by some sort of savings/global wealth tax to make the haves pay more than the have nots, which is where the complications should arise. So abolish income tax, boost VAT and introduce an assets based tax. Simples (and you can sneak in some bracket creep which always happens in radical change!)

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