We’ve just got past the 30th of June, which is the end of the tax year here in Australia. There is a flurry of preparation as the final transactions of the year come through and we start to prepare tax returns and make final tax payments.
Word has it that our current government has doubled the number of pages of tax law (going the wrong direction, folks) in the last few years, and those of us in small business spend increasing time on compliance paperwork for our ‘new tax system’.
Now, I don’t mind paying taxes at a reasonable level, but I am rapidly getting sick of the paperwork. I do like running my own accounts, so I know what is going on, so I’m not really prepared to hand my receipts to somebody else and lose the ability to track day-to-day how the business is doing.
After doing all the paperwork and knowing there is more to come, what I want this week is automatic taxation. I want the portion to be remitted to the government to be automatically removed at transaction time. There would be different flavours of transaction with associated tax rates. Given that every time we use a credit card or bank account, there is all the back-end there anyway, why don’t they just sort out the tax then?
Using cash makes this difficult, of course, and there are many technical problems to solve. It would all be much easier if we all carried with us something that could act for us in every transaction, a portable PDA/phone/wallet with strong open-source crypto we could trust that handled the transactions for us.
The portable PDA/phone/wallet is getting close to reality. Much more work is needed on the infrastructure, and a hugely simplified tax law to support it all.