To build appropriate foundations for a tax system the role of tax in the economy and wider society has to be properly understood. It is my suggestion that this is rarely the case. Just as the Bank of England had to say that the role of banking had been almost wholly misunderstood by economists and was incorrectly represented in almost all economics tax books in 2014, so too is tax widely misunderstood.
Everybody’s entirely wrong about banking and also tax. Except me of course. Me, you know, MEEEEE!
At which point he goes on to say that tax is only about reducing inflation. Hmm, so, as we’ve not got much inflation then we should be lowering tax, right? Or how is that the message of MOAR TAX doesn’t work that way?
If government did not spend first then none of the currency it insists be used to pay the taxes it demands be paid would actually exist.
Sigh. Just because government spending does put money into the economy does not mean that the only source of money is government spending.
The foundations for Scottish taxation that I propose are based on this economic logic. It is a logic that could liberate Scotland to become a fully economically literate and functioning state and truly equip it for independence.
Wouldn’t the designer of such a plan have to be economically literate?