Taxation

Press, 15 May 1981, Page 12

Taxation

Sir,—lt surprises me that local Labour M.P.s are “utterly, opposed” to the turnover tax system. These same M.P.s have been denouncing our present taxation, and yet they do not support the only system that would rid us of all our present tax problems. In “The Press” today the Labour members do not mention that turnover tax would replace all other taxation, so all their following arguments are false. The low income earner would pay less tax, not more as they seem to think. Prices on most items would not rise because heavy sales taxes would not be applied. And all companies would pay tax on their turnovers, so lessening the over-all tax burden. Labour M.P.s have been vocal about all the companies that are paying no.tax, so it is

strange that they have neglected to mention this aspect of turnover tax.—Yours, etc., SCOTT ARMSTRONG. May 13, 1981. Sir,—J. Finlayson and J. Timings both have obvious deep misunderstandings of turnover tax and of Milton Friedmanism. Turnover tax is not value added tax (V.A.T.) as J. Finlayson indicates. Milton Friedman is in favour of T.O.T. but has boldly stated at all times how V.A.T. would not and has not ever worked in any country. J. Timings makes Milton Friedman sound like some person who wants control of individuals’ lives when this is what he is fighting against (Government control). They have shown how little they really know and how little they have studied Friedman’s;philosophies.—Yours, etc.. A. R. COTTON. May 13, 1981.