Analysis Of Tax By Thomas Paine

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Introduction

Taxes play a big role in society nowadays. Everything we earn and spend is taxed. There are 2 types of taxes, Direct and Indirect i.e. the 2 Ugly Sisters of Tax. Direct refers to Income Tax and Indirect refers to VAT (Value Added Tax) Thomas Paine looks at how tax was shifted from the rich to the poor thereafter a tension arose.

Thomas Paine, Rights of Man

In Chapter 5 of Thomas Paine’s book, it looks at what has caused tension surrounding Indirect and Direct taxes. Direct being Land Tax and Indirect being excise tax. Thomas Paine made reference to the Great Excise Revolt 1733, where land tax is to be abolished and excise tax increased. Land Tax was paid by the wealthy with large estates and excise tax being paid by the poor. …show more content…

aristocrats, used the power to ward off the taxes imposed on them and transfer such a burden upon items of consumption and as a result the wealthy would be least affected, or even exempted

The tension lies where Land tax is decreasing and Excise tax increasing. Thomas Paine stated that taxes would increase through the consumption of beer. The Aristocrats/Wealthy were not affected by the increase as they ‘brewed their own beer free of this duty’ (Paine.T, 1792). This affected those who were unable to brew their own beer and had to purchase it.

Land Tax was no longer the biggest share paid, Excise tax was. Individuals that owned small estates were also affected by ‘taxes thrown on articles of consumption’ (Paine.T, 1792) because they consume more articles compared to the wealthy that just own large …show more content…

Poor rates are direct taxes, therefore excise taxes.

“when taxes were very low, the poor were able to maintain themselves; and there were no poor rates. In the present state of things, a labouring man, …does not pay less than between seven and eight pounds a year in taxes. He is not sensible of this… disguised to him in the articles which he buys ...he is consequently disabled from providing.”(Paine.T, 1792)

Some people are unaware of the fact that they are paying more tax than normal. So low income households were losing a higher percentage of their salary to the tax increase and implementation of the poor-rates. ‘It is no other than the consequence of the excessive burden of taxes’ (Paine.T, 1792). Poor-rates can be abolished and thereafter setting aside double the taxes that will be re-distributed to the poor.

Fair

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