Category Archives: taxation

Expenditure Must Equal Tax Take

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OK, so first off, what is the tax take of a country?

  • My definition is – the exact amount of money that a country receives in tax revenue in any given year
  • NOT what it hopes to receive but what it actually receives
  • Any tax collection authority has an idea of what their tax take will be any given year and they will take account of leakage (tax evasion which is illegal) and an idea of what won’t be paid via avoidance (they set the rules, so they expect people to exploit the holes)

So now we’ve got that straight, the tax take is what you should expect to get and you should plan to get. Whatever your view on tax (hate it or think people should be taxed more) assuming you will get more is silly – it’s like saying people won’t commit crime. Criminals will avoid paying tax and most people (call them immoral if you want, morality is not one size fits all) will ONLY pay the tax they have to.  I have my own personal view of tax and it’s that there should be a flat tax BUT that’s not for discussion now – my only point today is that the tax take must equal the expenditure any government makes.

According to this article the UK will pay £1billion a day in interest supporting our debt. http://www.cityam.com/article/1399490719/closing-deficit-isnt-enough-uk-debt-risk-financial-stability. You can beat me up on the difference between deficit & debt but one thing is clear: you cannot pay off the debt until you are spending less than you taking in in tax receipts. Why is this so important to me and why should it be important to you (as let’s face it, prudent economic ain’t sexy)? Well I pay a lot of a tax and I’m not alone in that. If you’re a single person earning £50,000 you will pay out £15,000 in tax. That’s a lot of money, you have no kids, don’t use much public services & still the government cannot balance the books. I’d be pissed with that. I give you £15,000 every year & you still overspend? And you want MORE?? Exactly.

So, considering most people don’t want to pay more tax and let’s face it, it’s the lowest tax brackets that generate the most tax, the expenditure clearly has to come down. The left wing will say armed forces, trident etc will have to come down & the vulnerable cannot be impacted; the right wing will say the benefit system is too generous, the NHS is a behemoth and the armed forced must be protected.  I see both views but I don’t want to start that debate here, but let’s get one thing straight – we have our tax take, we have our current expenditure & it’s frankly too high. Choose your current UK expenditure you hate and tell your MP you want it gone. But we cannot keep going on like this, we cannot keep servicing a debt that costs so much, having someone earning £12,000 a year paying for a Tory MPs stables to be heated or the Royal Family’s Range Rover.

As Vince Vaughn in Starsky & Hutch said:

“Coke it costs money, planes they cost money. This yacht, this perm, my kid’s braces, it all costs money”

It all costs money kids & when we the taxpayer funds that bill, we MUST force our MP’s to ensure that the current tax take (no more than it is now) equals what is spent.