Tax Relief for the Average Wage-earner and the Wealth Equalization Tax
The author proposes to axe the Income Tax for the average income-earner and replace it with a Wealth Equalization Tax (WET). In Britain, William Pitt the Younger is said to have introduced the Income Tax in1797 in order to bailout the debt-ridden economy after the Napoleonic wars. In most of the developed economies, the overall tax burden is excessive (reaching even more than 50% of the individual income in Europe). Also, in the West, most essential services provisions today are privatized for which the tax payers still have to pay. In an era of thriving global market economy and privatized public services, countries can employ innovative techniques to raise money. Can we generate additional national income without taxing the average wage-earners? Yes, we can. Can the state relieve the average tax payer and axe the income tax for the average person in the near future? It seems a real possibility, if the politicians have the will to do it.
The WET is essentially a straight forward income tax to be levied from the high-earners, say for example, on the yearly earning of over £42,000 in Britain or $60,000 in the US. It can be a progressive tax between10% to 25% based on the income earned. The definition of an average income-earner meant to be those who earned below the threshold of £42,000 or $60,000 a year.