Could a cashless society abolish income tax?

[Talk Wrench]

Just to paraphrase a few comments from a conversation during the weekend....

Based upon the theory that if every transaction was completed with a set tax, then there would be no need for income tax.

As we move towards a cashless society, is the abolishment of income tax a real possibility?

 

[Rocket_Ronster]

Not a chance.
Income tax will always remain, and the Govt will find new and interesting ways of wasting it.

 

[Tin basher]

Just like decimalisation I'm all in favour of the introducing a cashless society just as soon as all the old people have departed.

 

[Barch]

Just to paraphrase a few comments from a conversation during the weekend....

Based upon the theory that if every transaction was completed with a set tax, then there would be no need for income tax.

As we move towards a cashless society, is the abolishment of income tax a real possibility?

I can't see it.

What would you tax?

Food & utilities are a no-go area.

Tax on luxury goods would need to be in the 100,000% if not more to equate to the loss of income tax leading to a massive black market.

 

[Cornish_Pikey]

It's a terrifying future where the central banks have full control of where you can spend your money.

If they control all the money they control where and what you can spend it on. Then by proxy, they control you.

 

[Tin basher]

Based upon the theory that if every transaction was completed with a set tax, then there would be no need for income tax.

Every one paying the same set tax not a hope!!
I can hear socialists whinging loudly at everyone being equal and paying the same set price for the same service or goods. What about disposble income thresholds, affordability, annual income, salary, savings accumulated, benefits accrued means testing (Oh sorry not means testing). No that won't work you couldn't possibly have a society were everyone regardless of income pays the same set price. Next step with this idea is to expect people to pay the same price as their neighbours to have the bins emptied or the street lights on. Equal payment by all for all goods and services a none starter

 

[busby1971]

Sales taxes are regressive, income taxes are progressive (if structured right).

A cash less society does benefit all by removing a big chunk of the grey economy, which reduces tax evasion, the black market will find its own currency.

Biggest issue with the cashless/online world is the amount of fraud going on, seems so easy to divert and steal thousands of pounds, not only from the elderly and fiscally naive, but also the distracted.

 

[Deltaitem]

Doesn't that sort of happen already with VAT?