Sunday, 22 June 2014

Missing from Rethinking Taxation: Potential Hour Credits

In my previous blog I mentioned some of the references that came too late to add to my book, Rethinking Taxation. However, there was another aspect of my hourly averaging proposal that I decided not to mention at all in order to save space and thereby keep the cost of the book down.

The proposal is for an additional method of receiving hour credits. As well as granting hour credits the authorities could have the power to grant potential hour credits, which could later be upgraded to full hour credits.

Potential hour credits add greater flexibility into the hourly averaging system. They can help to make the system fairer, more encouraging of innovation, and reduce the scope for fraud. This anticipates some of the concerns that critics might have about hourly averaging.

In the following blogs I will say more about:
1.       How potential hour credits work.
2.       Potential hour credits for works of art and inventions.
3.       Potential hour credits and start-up businesses.
4.       The way that potential hour credits can be used as part of the provision of hour credits to the self-employed. 

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