We’re against easing the pain of paying tax

Yes, yes, we know, paying tax is the price of partaking in civilisation. But that’s still a price, a cost. We think that people should see, up close and personal, the cost of that civilisation being built on their money. We are therefore against this:

Income tax will be automatically deducted from state pensions for millions of retirees under plans being considered by Labour, The Telegraph understands.

Not because the state pension should, or should not, be taxed. But because this is easy taxation. Some to many will not really even note it. Tax should be painful so that proper consideration be given to how much is being demanded.

Yes, this does mean being against any form of taxation at source. Against PAYE itself even.

We have heard, and are not quite sure how true it is, that there was a time when tax in Hong Kong had to be paid in the one annual sum, in person, in cash. Having to count out that price of partaking in civilisation in £50 notes and passing it across the desk would put considerable pressure on the willingness of people to pay tax. Might even constitute pressure to lower the number of taxes, the rate of each of them and so on.

We think this would be a good idea. For a lower tax, smaller government, society would be, well, more civilised and with a price to match.

Tim Worstall

Yes, yes, we do know Milton Friedman was one of the originators of withholding, the US equivalent of PAYE. He later said it was his largest mistake.