Sup­port for flat tax

The Northland Age - - Opinion -

John Bas­sett (let­ters, March 12) writes, in­ter alia, of re­plac­ing in­come and other such taxes with a flat trans­ac­tion tax, and claims that would mean the wealthy have to pay tax. Give that man a beer!

For some time, I been try­ing to float the idea of do­ing away with all tax­a­tion (in­clud­ing those stealthy taxes such as mo­tor ve­hi­cle an­nual li­cens­ing) ex­cept GST, and ad­just­ing the rate of GST ac­cord­ingly.

On the one hand, that would seem to sim­plify things im­mensely. No one would need to bother with tax re­turns, and there would cease to be a need for an army of IRD staff to process tax re­turns.

On the other hand, as Mr Bas­sett points out, there would be no way of the wealthy em­ploy­ing tax-avoid­ance tricks, and the big­gest spenders would pay the most tax.

No doubt there are flaws in my idea, and I hope some reader(s) will quickly point them out. LEO LETCH Ben­ney­dale

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