Tax – Converge

Income tax rates are based on current/last year’s income. This makes them easy to calculate and implement.

This immediacy of taxes also makes them painful, and makes the tax slab thresholds as artificial barriers to income mobility. An example of this is when we get a raise which pushes us from near the top end of one tax rate bracket, to the bottom end of a higher tax rate bracket. This frequently means that even though the employer is paying us more after the raise, we are actually taking home less money due to a higher tax rate.

Government benefits work similarly. For example, the unemployment benefit / social support payments cut off (or reduce dramatically) when we start working. However, after accounting for taxes and loss of benefits, the take home income from pay is often lower than the unemployment benefits.

Continue reading Should we use multi-year, moving-average of income to calculate tax & benefit payments?

I had an appointment at the hospital today, and was thinking about the rates at the hospital car park. The parking area at big NHS hospital in my town has the highest parking rates around. They are probably more than double the rate at any other paid parking zone in the town.

At a first look, they seem extortionist. At most places, high parking rates are a nudge for users to either take an alternate means of transport, or to curtail their visits. At a hospital, however, few people visit by choice. Also, the visitors are more likely to use a car – comfort for the ill and all that. By charging these, probably ill, visitors these extraordinarily high rates, the hospital/NHS/council are just heartlessly milking the already suffering.

Unjust!

On a second thought, however, there is a valid reason behind these high rates – consumption tax. They are not just parking rates, they are an indirect tax on the heaviest NHS users.

Continue reading About those exorbitant hospital parking fees