A million tax pounds

[doodab]

Another approach is to be blind to your own individual circumstances. What system would you have if you didn't know what your place was going to be within the economy.

Yes also taken from game theory but in the case of taxation it's rather hard to achieve in practice. The only way I can think of to implement such a blind system would be to draw tax rates by lot, and it seems intuitively obvious (I'm without proof obviously ) that a flat rate system is the logical outcome of that.

[speling bee]

Yes also taken from game theory but in the case of taxation it's rather hard to achieve in practice. The only way I can think of to implement such a blind system would be to draw tax rates by lot, and it seems intuitively obvious (I'm without proof obviously ) that a flat rate system is the logical outcome of that.

But you've already said (I think) that you want a tax free allowance, so you have a tiered system, which you don't want.

[doodab]

But you've already said (I think) that you want a tax free allowance, so you have a tiered system, which you don't want.

It wouldn't be tiered. The tax free allowance would be the same for everyone. I also think people should be allowed to group together and combine their tax allowances e.g. as stakeholders in corporations. So they can use their tax free allowance and pay their tax on their share of an income stream at the corporate, or family, or individual level.

I think you would need a similar blind decision system to set the tax free threshold. Going back to the ideas of the system being equitable and envy free, most people in society would be better off with a tax free allowance so they would chose that over a system without it.

The main problem is that the rate of tax would need to be determined by the budgetary constraints rather than giving people a choice and it would need to be close to 40% to be revenue neutral with respect to the current system. Even though many people in the so called "squeezed middle" would be better off under such a scheme they would object to becoming 40% tax payers.

[TheFaQQer]

I don't know why there's been such a fuss about Gary Barlow.

Whatever he said, whatever he did, he didn't mean it.

[DodgyAgent]

I don't know why there's been such a fuss about Gary Barlow.

Whatever he said, whatever he did, he didn't mean it.