Monday, August 19, 2019

No Deal Brexit

No deal Brexit will not be much fun and can only be done by a radical downgrading of government spending, slashing of income tax and minimal welfare. Finishing QE and increasing interest rates necessary to help with Sterling. Fixed costs such as the TV licence, council tax and standing charges from energy companies will also have to be abolished. The combination of that with much lower tax rates (flat twenty percent and no NI) means that people really will have a lot more dosh to spend.

Much money will be clawed back by the combination of a transaction tax and turnover tax, the latter variable according to the nature of the company and, perhaps, set by public vote via the internet – so that rip-off companies will pay a much higher tax. These taxes will also replace employer NI and business rates, equaling out the cost of online and High St companies. VAT will be reduced to match any increase in new tariffs, overall government revenue and consumer prices of UK produced items staying the same.Once things have settled down post Brexit, VAT can be completely replaced by increasing the transaction tax.

Welfare will consist of a single payment of £5000 per person and half that per child up to a limit of £12000 per household – the rest of the system will be dead except for disability benefits and pensions – although the state pension age would probably need to be around 75… Pension and charity tax relief gone, as will be rollovers into dodgy tax relief schemes. Social care funded by an inheritance tax levy, sales tax on houses with rates set by postcode (high where there is house price inflation, near zero in depressed areas).

Sounds mad but unless the State gets its spending sorted it will become a Failed State!