Oh, Deputy Labey, how the civil servants will love you
Saturday 7th March 2009, 9:59AM GMT.
From Craig Leach.
DEPUTY Carolyn Labey deserves full recognition for her single-minded resolve to adopt a UK VAT regime and create an exemptions industry.
The numerous additional civil servants needed as a result of her proposition could become the Labey Exemption Administration Department. The differential food and other supplies data to be supplied by a host of businesses from corner shops and cafés to garden centres could be called Labey Audit Trails.
The resulting lawsuits could be called Labey Actions, and, if UK experience is anything to go by, these would need to be heard by the Labey GST Tribunal.
Other taxes would have to be raised not only to replace lost revenues but also to pay for the extra civil servants: the Labey Supplementary Tax.
It’s not just civil servants, accountants or lawyers who are beneficiaries of her proposal. Those who will save most are the biggest spenders, especially those who own heated swimming pools and have frequent dinner parties. A Labey Big Spender Supporters Society?
At the election many candidates did not have time to fully study the subject of exemptions. Now, though, they have an obligation to study it before supporting the superficial seductive appeal of ‘no to tax on food and fuel’.
Two things for them to think about: It is true that a poor person does pay GST on food and fuel, and that may seem wrong. However, overcome the myopia and what really counts is outcomes. If that poor person receives benefits, whether GST compensation, housing subsidies, social security benefits or free bus passes, the value of which far exceed the tax payment, then that is the outcome that counts.
Secondly, GST payment is essential to obtain fair contributions to public spending from tax evaders and avoiders. The Labey proposition would let them off the hook. The proposal would also reduce contributions from tour-ists to the public purse.
Deputy Labey would be better employed emulating John Le Fondré and ensuring that the proceeds from an efficient tax regime are used to achieve social equity rather than saddling us with a costly bureaucratic nightmare.
To recreate the morass that is the UK VAT regime when enlightened competitors such as Singapore and New Zealand have taken heed of advice would be absolute folly.
However, if we are to create an exemptions industry, let its principal promoter have permanent recognition for the achievement.
Les Fauvettes,
La Grande Mielle,
Grouville.
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