Summary and Aims of our policy.

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To create a fully automated tax accounting and tax collection system, which minimises: stress, complexity, costs of tax accounting, costs of tax collection, and tax evasion.  Our policy is radical, and fundamentally changes the way we evaluate and collect tax.

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Current unresolved issues.

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The process of tax accounting and tax collection is hugely complex in our country, and we estimate there is more than half a million people working in this sector.  We have over 30 different taxes in our country, and for example HMRC which collects only some of these taxes, has 66,000 employees alone.  The current system causes endless stress, confusion, and cost for businesses, distracting them away from the important things they need to do in order to run their businesses, and creating wealth for everyone in the country, it can be similar for many private individuals also.  Furthermore the complexity of our tax systems create endless opportunity for tax fraud, making tax collection harder for the government.  Nearly all of this is waste and can be avoided by simplifying the system. 

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Our policy - How it solves the issues and achieves the aims.

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Our accounting and tax system works with other policies and systems we wish to put in place, and has the following features:

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1. A hugely simplified tax system which is cost based, see our Tax & Spending (fiscal) Policy. 

2. A single banking system, which interfaces with all organisations and individuals, see our Transparent Banking Policy.

3. A simple system of number codes which identifies the accounting/tax classification of every product and service sold.

4. At the point of sale, each item is logged with its code, and creates an automatic invoice for the customer, within the single banking system.

5. When an item is logged on an invoice, the correct tax calculation is automatically applied to it, by a central computer.

6. The central computer calculates all taxes payable, on all sales and transactions, by simple algorithms (that are published).

7. The computer automatically delivers tax statements to businesses and individuals on a monthly basis, giving the full but simple breakdown of their tax bill, for its subsequent payment.

8. Everyone will be educated throughout all of school of this simple system, and money management, so they are fully equipped to deal with all their finances in adulthood.

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The system we propose is a single invoicing, banking, accounting, and tax system in one.  The only thing any business, or anyone ever has to do, is to correctly create invoices, and pay their own invoices.  Everything else happens automatically and electronically, so there is never any need of paper, sending invoices, chasing missing invoices, processing invoices, bookkeeping, or creating tax accounts, all these activities will be a thing of the past.  All the usual information is on the invoice, and businesses can immediately see all the invoices that have automatically been sent out, the invoices they have automatically been sent, which ones are paid, which need paying, and by when.  All financial processes and analysis is done automatically and immediately in real time, so for example as soon as you pay a suppliers invoice, it immediately shows as paid in their system and in their bank account, and everyone immediately knows the change in their tax liability at the point in time the invoice is paid.  Clearly the system can include financial management software, so that any financial analysis required by companies, is automatically produced, and the system can interface with ordering, processing, and delivery.  These possibilities for combining and simplifying electronic systems extend throughout all aspects of business, and the economy, and it is our policy to facilitate all opportunities to do so.

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The entire complexity, cost and stress of money management and tax is almost entirely eliminated in this way, thus achieving our aims.

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Wellbeing and costs benefits of our policies.

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Given that this policy would largely remove the jobs in tax accounting, tax collection, and all related and supporting professions, we estimate that it would save at least one million jobs, at say a cost of £50,000 each, (the costs of paying and facilitating each employee), a total of £50 billion each year.  These people will not be out of work, the money they were paid in the old system is still available, and therefore they can be paid the same amount to do other jobs that are of value to society, such as teaching, healthcare, manufacture, and construction.  In this way the economy becomes more efficient, and delivers more value to everyone, with the same amount of labour from the workforce, see our Value Adding Work Policy for a detailed explanation of this.  This is one of the many policies we have which contribute to our goal of doubling GDP without increasing how much people work, and in the process eliminating all lack of funding for public services, and poverty, for ever.  See our Economic & Business Policy for a full description of all these policies.

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The reduced stress of business trading, and the ease with which all financial processes take place, would create a significant increase in the wellbeing of all people, especially in the workplace.

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Supporting policies.

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Transparent Banking Policy

Value Adding Work Policy

Economic & Business Policy

Education Policy

Restructuring Labour Policy

Efficient Work Policy

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Witten by Marcus white 9-5-2024 ©.