Sunday, 8 December 2013

Stamp duty: no hypocrisy please

A national newspaper is reporting that rising house prices will result in more people paying more money in stamp duty.  Stamp duty is a tax payable on the purchase price of a house, and has the clear advantage to the government that it is hard to evade.  Non-collection rates are routinely low.  In fact I am not aware that non-collection rates even exist.

Does anyone like paying taxes?  Tax revenues meet the cost, or some of the cost, of government and local government spending.  The balance is met by borrowing at interest, which requires ongoing taxation to meet the interest payments.

It is easy for someone who is affected by one particular form of taxation to complain, but taxation needs to come from somewhere.  It is easy to adopt an attitude that someone else should pay tax instead of yourself, but I repeat that stamp duty is hard to evade. It is therefore arguably the last tax that the government should seek to abolish.

If you do not like paying taxes, then join a political party which has realistic policies for reducing public spending.  If you vote for high levels of public spending, then please do not complain when you are taxed to pay for that spending.

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