We’re always going to have a progressive tax system even if not every component of it is itself progressive. Quite apart from Adam Smith’s point that perhaps more than in proportion is fair as a contribution to the public weal it’s also true that the rich have more money so why not make them cough up more?
But that leaves us with the question of whether every tax should be more than in proportion:
Wealthy could be charged more for their TV licence, suggests Lord Hall
The TV license is a tax. Gordon Brown declared it so near two decades back. So, should richer people pay more for the BBC? It’s a legitimate question:
The BBC has hinted that wealthier viewers will be asked to pay more as the corporation prepares to end free licences for those over 75.
Of course, to have a system that is able to identify wealthier viewers it will be necessary to get HMRC running the collection system. We’re not going to allow the BBC to pry into our financial affairs, after all. Quite apart from the fact that trying to run a parallel system estimating incomes would be grossly, overly, expensive.
That is, to work, this would have to be a tax collected through the normal tax system. Which has its merits.
I also think this is a last gasp attempt to keep that taxation funding. I can;t see any fair system that is not a subscription. They could even ask Sky how to do it as they’ve already got all the necessary infrastructure…..