Autumn Statement 2013: What George Osborne should have said...

Here's the speech we wanted to hear from the Chancellor today


"Our system of tax is too complicated. Our tax code is 11,000 pages long. That is too long. By about 10,990 pages I'd say. It makes blunders and fraud inevitable.

But it's worse than that.  Our system of tax is immoral, it is inconsistent and it creates inequality.

So I am simplifying it. Here's how. 

Why should the individual worker pay more tax than the company? Why should the multi-national corporation with an army of accountants employed solely to deal with the taxman receive better treatment than the local small businessman? Why should any group receive special favour? That is not capitalism, that is not socialism, it is not social democracy - it is crony capitalism.

From now on, in the name of equality, simplicity and efficiency, individuals and corporations will be taxed at the same rate. We will have a simple flat rate of tax across the board.

Excess taxation creates three Fs - Fight, Flight and Fraud, as Charles Adams notes. We have all three Fs in abundance. We have Fight, Flight and Fraud, because we have excessive taxation.

So the flat rate of tax will be just 15 per cent.

People are happier to pay tax when they perceive it as fair. Overseas investment will flood here - to benefit from our talented and newly motivated workforce. And government revenue will actually increase with these lower tax rates.

Meanwhile, government obligations will fall. With more money in their pockets, people will be able to buy for themselves the services for which they now depend on government.

People spend and invest their money better than governments do. We restore people's moral right to keep the profits of their endeavour.

There shall be no more quantitative easing, I have told Mr Carney. We do not need to print money and give it to banks to lend out to get the economy turning. This is just giving banks special favour - more stuff of crony capitalism. Instead we let people keep the money they have earned. Their own spending and investment will grow the economy. And the growth will be genuine, not built on finance and malinvestment.

We live on just 7 per cent of the land. Only 2.5 per cent of land is actually built on. A decent house can be built for less than a £100,000. Yet over fifty per cent of young people believe they will never own a house, and the average age of the first-time buyer in London is now over 40. He or she'll be a pensioner before they can start a family. What insanity is this?

We abolish this nonsense that is Help to Buy. Or, as we like to call, it Help to Debt.

And we introduce a simple land value tax. We do not tax their labour, we tax people on the land they use. We do not tax production, we tax consumption. If you are one of the 1 per cent who owns 70 per cent of the land in this country, you will pay tax on that land. If you do not wish to pay tax on it, then let the land pass to someone who will.

The unearned wealth that is the land shall be distributed fairly and equally. And people will be able to build houses for themselves.

The administration of this tax will be simple. It is transparent and honest.

We have drawn from the example of Singapore, whose tax rates are low and simple. It ranked the second most competitive country in the world, and it has the highest rank in terms of trust in politicians. It has the third highest GDP per capita, after Qatar and Luxembourg.

Low tax, flat tax, simple tax and land value tax. Why on earth has it taken us so long to het here?

I thank you".

Life After The State by Dominic Frisby, is published by Unbound


React Now

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
iJobs Job Widget
iJobs General

EYFS Teacher

£120 - £162 per day: Randstad Education Hull: Randstad Education require an ex...

Year 3 Teacher

£120 - £162 per day: Randstad Education Hull: Year 3 primary supply teacher ne...

SEN Teacher

£100 - £120 per day: Randstad Education Bristol: Supply special educational ne...

Regional ESF Contract Manager

£32500 - £35000 per annum: Randstad Education Birmingham: European Social Fund...

Day In a Page

Read Next

August catch-up: Waiting on the telephone, tribute to Norm and my Desert Island Discs

John Rentoul
Jihadist militants leading away captured Iraqi soldiers in Tikrit, Iraq, in June  

Middle East crisis: We know all too much about the cruelty of Isis – but all too little about who they are

Robert Fisk
Middle East crisis: We know all too much about the cruelty of Isis – but all too little about who they are

We know all too much about the cruelty of Isis – but all too little about who they are

Now Obama has seen the next US reporter to be threatened with beheading, will he blink, asks Robert Fisk
Neanderthals lived alongside humans for centuries, latest study shows

Final resting place of our Neanderthal neighbours revealed

Bones dated to 40,000 years ago show species may have died out in Belgium species co-existed
Scottish independence: The new Scots who hold fate of the UK in their hands

The new Scots who hold fate of the UK in their hands

Scotland’s immigrants are as passionate about the future of their adopted nation as anyone else
Britain's ugliest buildings: Which monstrosities should be nominated for the Dead Prize?

Blight club: Britain's ugliest buildings

Following the architect Cameron Sinclair's introduction of the Dead Prize, an award for ugly buildings, John Rentoul reflects on some of the biggest blots on the UK landscape
eBay's enduring appeal: Online auction site is still the UK's most popular e-commerce retailer

eBay's enduring appeal

The online auction site is still the UK's most popular e-commerce site
Culture Minister Ed Vaizey: ‘lack of ethnic minority and black faces on TV is weird’

'Lack of ethnic minority and black faces on TV is weird'

Culture Minister Ed Vaizey calls for immediate action to address the problem
Artist Olafur Eliasson's latest large-scale works are inspired by the paintings of JMW Turner

Magic circles: Artist Olafur Eliasson

Eliasson's works will go alongside a new exhibition of JMW Turner at Tate Britain. He tells Jay Merrick why the paintings of his hero are ripe for reinvention
Josephine Dickinson: 'A cochlear implant helped me to discover a new world of sound'

Josephine Dickinson: 'How I discovered a new world of sound'

After going deaf as a child, musician and poet Josephine Dickinson made do with a hearing aid for five decades. Then she had a cochlear implant - and everything changed
Greggs Google fail: Was the bakery's response to its logo mishap a stroke of marketing genius?

Greggs gives lesson in crisis management

After a mishap with their logo, high street staple Greggs went viral this week. But, as Simon Usborne discovers, their social media response was anything but half baked
Matthew McConaughey has been singing the praises of bumbags (shame he doesn't know how to wear one)

Matthew McConaughey sings the praises of bumbags

Shame he doesn't know how to wear one. Harriet Walker explains the dos and don'ts of fanny packs
7 best quadcopters and drones

Flying fun: 7 best quadcopters and drones

From state of the art devices with stabilised cameras to mini gadgets that can soar around the home, we take some flying objects for a spin
Joey Barton: ‘I’ve been guilty of getting a bit irate’

Joey Barton: ‘I’ve been guilty of getting a bit irate’

The midfielder returned to the Premier League after two years last weekend. The controversial character had much to discuss after his first game back
Andy Murray: I quit while I’m ahead too often

Andy Murray: I quit while I’m ahead too often

British No 1 knows his consistency as well as his fitness needs working on as he prepares for the US Open after a ‘very, very up and down’ year
Ferguson: In the heartlands of America, a descent into madness

A descent into madness in America's heartlands

David Usborne arrived in Ferguson, Missouri to be greeted by a scene more redolent of Gaza and Afghanistan
BBC’s filming of raid at Sir Cliff’s home ‘may be result of corruption’

BBC faces corruption allegation over its Sir Cliff police raid coverage

Reporter’s relationship with police under scrutiny as DG is summoned by MPs to explain extensive live broadcast of swoop on singer’s home