WHAT IS INCOME TAX?

The hardest thing to understand in the world is the income tax. (Albert Einstein)

Income tax was first introduced in the UK in 1799 as a TEMPORARY MEASURE by the then Prime Minister, William Pitt the Younger, to help fund the Napoleonic wars and was the first tax in British history levied directly on people’s earnings.

Income Tax was formally repealed in 1816, a year after the Battle of Waterloo, but it was reintroduced in 1842 by Sir Robert Peel to deal with a massive public deficit.

At this time, it was levied only on the very rich, and it remained so for many years.

In 1874, it contributed only £6 million of Government revenues of £77 million.

Throughout its 19th Century history, no one expected Income Tax to become a permanent feature of British life.

However, as it became accepted (particularly after the World Wars) that the state should do more to provide services for citizens, the long-lived tax evolved into the principal means of public funding.

Today, few criticise the concept of Income Tax itself, and controversy focuses on the rate and those elements of earnings that are liable.

Income Tax is one of the most high-profile of all taxes (not least because of its simplicity and transparency) and as such fluctuations in the regime are frequently headline news.

And so, even though the Napoleonic wars have long ended (not including the 26 years of tax repeal between 1816-1842), income tax to this day still remains a TEMPORARY TAX and actually expires on April 5 each year.

However, for income tax to remain in force, a provision in the annual Finance Bill renews it to commence again on the 6th April.

The ‘Provisional Collection of Taxes Act 1913’ permits the Government to continue to collect Income Tax for up to four months after the expiry of the measure until the Finance Bill becomes law.

For further information on UK income tax, please refer to the following:

The Peaceful Planet believes that ALL taxation (especially income tax) to be immoral and an unnecessary financial burden on every wage-earning citizen on the planet.

A Taxless Economy will abolish ALL taxes.

Provision For Everyone’s Basic Needs & Rights

The Peaceful Planet advocates that money creation is taken away from the corrupt corporate banks and financial institutions and given back to the government who will ‘create’ money ex nihilo in order to provide all the basic needs and rights for all their citizens as set out in the ‘Universal Declaration of Human Rights‘ and for all the national and local services and amenities that all citizens currently pay taxes for (see ‘What Our Taxes Fund’ below):

Article 25 of the’ Universal Declaration of Human Rights’ states:

  • (1) Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control.
  • (2) Motherhood and childhood are entitled to special care and assistance. All children, whether born in or out of wedlock, shall enjoy the same social protection.

Article 26 of the Universal Declaration of Human Rights states:

  • (1) Everyone has the right to education. Education shall be free, at least in the elementary and fundamental stages. Elementary education shall be compulsory. Technical and professional education shall be made generally available and higher education shall be equally accessible to all on the basis of merit.

What Do Our Taxes Fund?

This list is not comprehensive and is not in any particular order of government spend:

  • Infrastructure Projects: Government needs money to build roads, bridges, dams and many important projects which are available to the society as a whole.
  • Public Security & Defence: Money collected from taxes is used to provide police and fire departments. It also helps to fund money needed to maintain defence forces (army, navy and air-force) and buy arms for them.
  • Council services: Keeping roads clean, water treatment, street lights, trash removal and maintenance of public parks etc.
  • Welfare Services: elderly care, child care, physically & mentally disabled care, impoverished & deprived areas
  • Education Services: Schools & Universities, special needs education
  • Housing
  • Transport
  • National Health Service (UK)
  • Maintenance of historic monuments
  • Government aid
  • Emergency relief
  • Conduct elections
  • Leisure services
  • Run several government institutions:
    • Department for agriculture
    • Commerce
    • Energy
    • Urban development
    • Treasury
    • Judiciary

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