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Taxation by Obfuscation
Perfection
is rarely if ever achieved. It is
not a natural phenomenon, and Man’s creations rely on natural materials and
conditions. The more a creation
depends on human participation, so does the likelihood of perfection become ever
more remote. And yet there is a
spark within the human spirit that seems continually to strive toward
perfection. At least, there is a
tendency to want things to be better than they are, and perhaps that is the
driving force of civilisation.
Democracy,
being man-made and dependent on human participation, is far from perfect,
although measured against other forms of governance it has much to commend.
As we gain control over other aspects of our lives, then, we might be
expected to divert some effort to improving the system of democracy, but here
there appears to be strong resistance to change.
The US Presidential election of 2000 descended into farce because the
democratic system had refused to embrace the benefits of technology.
Best Interests of the voters
Hopefully,
votes will eventually be registered, monitored and counted by computers, but
once the election is over the real problems of governance begin.
In theory, the democratically elected party carries out the wishes of the
voting population. Historically, there has been no way that those elected could
ascertain the wishes of the people on every issue, and so parties are rather
dubiously elected on general policy. On
rare occasions a specific issue is put to the people by way of a referendum, but
this would be an impractical way to resolve all matters.
There is also a strong belief, particularly in political circles, that as
issues become more complex so the people are incapable of rational
decision-making. Hence the
politicians’ strong resistance to change:
we must hang on to our power because it is in the ‘best interests’ of
the voters.
But as the
electorate becomes technically aware and better educated, with access to more
and more information and analysis, this traditional view can no longer be
justified. The ‘Man in the
Street’ cannot, overnight, be expected to manage a complex national economy
within a delicate, constantly changing international arena, but there is no
reason why society should not begin moving in this direction. The starting point could be public spending.
What about the nurses?
For decades,
there has been an imbalance between the popular desire to improve the lot of
nurses, teachers and police constables and the politicians’ reluctance to
raise the necessary taxes. The
political logic is simple: raise
taxes, even in a popular cause, and we risk losing the next election.
The problem is made more complicated by the traditional, unwieldy system
of taxation: taxation by
obfuscation. In the nineteenth
century there was no alternative, but modern computers could revolutionise the
way we account for public spending.
The Man in
the Street pays taxes in so many ways that he will have no idea of his total
annual tax bill. And perhaps not
even the well-informed politician knows the relationship between the various
taxes raised and the different areas of public spending. But with the computer power now available there is no reason
why we should not break down these figures and present them in a way that could
be understood. Take, for example,
the three areas of health, education, and policing.
Paying for the status quo
Annual
budgets should be presented to the voters with clear options, with income tax
becoming an umbrella term for specific taxes.
The Man in the Street can be told that the cost of maintaining the status
quo is 7p for health, 7p for education, and 7p for policing (or whatever the
figures are). To reduce waiting
levels in the health service to specified targets would mean building 16 new
hospitals over the next ten years (additional cost 1p), and recruiting (and
retaining) 10,000 more nurses. This
would depend on improved nursing employment conditions, and the cost of making
nursing attractive (compared, say, to office work) would cost an additional 2p.
Similarly in the other areas, link the budget and status quo with
rates of taxation, and show the increase (or decrease) in taxation for specific
options.
A responsible majority
It would not
be difficult to present information in this way.
Of course, income tax is only one form of taxation, but corporation and
indirect taxes could be apportioned in like manner.
The system could be even more sophisticated, with such refinements as
taxes raised from cigarettes being shown as a credit in the health budget.
And using his home PC or mobile phone, or the keyboard at the local
library, post office or council office, the Man in the Street could vote item by
item for the community he wants. Politicians
have long assumed that people do not like paying taxes, but as we face
increasing frustration over public services that do not meet our expectations it
seems unlikely that the majority would fail to respond responsibly to this kind
of decision-making. And that is
what democracy is about ~ granting the responsible wishes of the majority of the
population.
There is an
old saying: people get the politicians they deserve.
Surely, as we enter the third millennium, it is time that a democratic
people be given the community it deserves.
© Harvey Tordoff
January 2001