Taxing Times

Courtesy Baron David Ward

Morrison’s Bread Shop

“There is a loaf of bread on Morrison’s shelf. But it didn’t just appear there by magic, the loaf of bread started its journey on John the farmers’ farm. Whoops, hang on a minute, John the farmer pays council tax on his hard standing and that council tax is added to the cost of the loaf of bread. So John the farmer rises early in the morning to plough the field and plant some grain. Just hold it right there. In the tractor there is red diesel fuel and that fuel carries a fuel duty of 36% plus the vat on the duty, plus the vat on the diesel and all that tax goes to the cost of the loaf of bread.

So now John has ploughed the field to plant the grain but the grain is not in the ground yet, the grain has to be sawed. So john the farmer fires up the tractor again to saw the grain. Just hang on. In the tractor there is red diesel fuel and that fuel carries a fuel duty of 36% plus the vat on the duty plus the vat on the diesel and all that tax goes to the cost of the loaf of bread. Now the grain is sawed and is in the ground and John the farmer has to wait three of six months whilst the grain grows and is ready for harvesting. Wight a minute, John the farmer pays council tax on his hard standing and that council tax is added to the cost of the loaf of bread.

So now it is time for harvesting, John the farmer fires up the big, monster combine harvester and harvests the field. Whoa, stop. In the combine harvester there is red diesel fuel and that fuel carries a fuel duty of 36% plus the vat on the duty plus the vat on the diesel and all that tax goes to the cost of the loaf of bread. Now John the farmer has a big pile of hay and a whole pile of grain, so john the farmer calls up Bob the haulage truck driver to carry the grain to the grain storage silo. Stop the bus right there. Bob haulage truck driver drives a truck on the road, now this has white diesel fuel in the tank and white diesel fuel carries a duty of 80% plus the vat on the duty plus the vat on the diesel and all that tax goes to the cost of the loaf of bread. Also Bob haulage truck driver pays road tax to drive on the road, also Bob haulage truck driver lives in a house and pays council tax and all that tax goes to the cost of the loaf of bread.

It gets better the grain has now been delivered to the grain storage silo. Stop. The grain storage silo company pays commercial council tax and all the employees of that company live in houses and they all pay domestic council tax and all that tax is added to the cost of the loaf of bread. Are we beginning to see a trend here? So the grain sits in the storage silo until it is called upon by the flower mill. Just hang on. That’s even more commercial council tax and all that tax is added to the cost of the loaf of bread.

That’s absolutely correct the tax man just loves the tax. So the flour mill calls up Bob the haulage truck driver to carry the grain to the flower mill. Stop, my ears are bleeding and my brain hurts. No Pain no gain knowing the truth is a painful experience and if you can’t stand the pain go back to sleep and keep paying the tax. Are you insane? Aren’t we all, we have been doing this insanity for donkey’s years, now shut up and take it. Nooooo. Bob the haulage truck driver drives a truck on the road, now this has white diesel fuel in the tank and whit diesel fuel carries a duty of 80% plus the vat on the duty plus the vat on the diesel and all that tax goes to the cost of the loaf of bread. Also Bob haulage truck driver pays road tax to drive on the road, also Bob haulage truck driver pays lives in a house and pays council tax and all that tax goes to the cost of the loaf of bread. Why, why, Why. Shut up and take it. OMG No.

Now the grain is at the flower mill. Stop please no, I can’t take any more. Shut up and take it, take it, take it, take the pain what doesn’t kill you will only make you stronger. The flower mill company pays commercial council tax and all the employees of that company live in houses and they all pay domestic council tax and all that tax is added to the cost of the loaf of bread. Whimper! Somebody has to pay the tax man now take it. Having made the grain into flower now the flower is ready to go to another storage depot. St— Suck it up!! The flower mill calls Bob the haulage truck driver to carry the flower to the storage depot. Bob the haulage truck driver drives a truck on the road, now this has white diesel fuel in the tank and white diesel fuel carries a duty of 80% plus the vat on the duty plus the vat on the diesel and all that tax goes to the cost of the loaf of bread. Also Bob haulage truck driver pays road tax to drive on the road, also Bob haulage truck driver lives in a house and pays council tax and all that tax goes to the cost of the loaf of bread. The storage depot company pays commercial council tax and all the employees of that company live in houses and they all pay domestic council tax and all that tax is added to the cost of the loaf of bread. Do you have a gun? Somewhere.

Now the bakery has an order for some bread so they call Bob to collect the flower from the storage depot and take it to the bakery. Not saying anything anymore. Bob the haulage truck driver drives a truck on the road, now this has white diesel fuel in the tank and white diesel fuel carries a duty of 80% plus the vat on the duty plus the vat on the diesel and all that tax goes to the cost of the loaf of bread. Also Bob haulage truck driver pays road tax to drive on the road, also Bob haulage truck driver lives in a house and pays council tax and all that tax goes to the cost of the loaf of bread. The bakery company pays commercial council tax and all the employees of that company live in houses and they all pay domestic council tax and all that tax is added too. Can I find that gun? No, you’re not allowed a gun it’s against legislation, besides you might just use it to shoot the tax man, and we can’t have that now: can we? Silence:- So the bakery calls up Bob to take the bread to Morrison’s. Silence: Bob the haulage truck driver drives a truck on the road, now this has white diesel fuel in the tank and whit diesel fuel carries a duty of 80% plus the vat on the duty plus the vat on the diesel and all that tax goes to the cost of the loaf of bread. Also Bob haulage truck driver pays road tax to drive on the road, also Bob haulage truck driver lives in a house and pays council tax and all that tax goes to the cost of the loaf of bread.

Morrison’s is a company that pays commercial council tax and all the employees of that company live in houses and they all pay domestic council tax and all that tax is added to the cost of the loaf of bread. What you looking for in that draw? Nothing:- Where you going? There’s a peaceful occupy Downing Street on today I thought I would keep them company: What’s that in your pocket? Nothing: Well don’t be too long, you have work to do so you can keep paying the tax man: And when you get old you’re going to need plenty of money to spend on the grandkids, things like mobile phones and Xbox’s and computer games:

The door closes. Now the first question is how much is the tax on a loaf of bread when it is still on the shelf? The tax man has already had more than he should. He does not care if it is sold or it goes stale. It does not matter who pays for the bread weather the purchaser is employed or unemployed it’s all the same to the tax man.

So how much is the tax value on a loaf of bread on Morison’s shelf? If all the tax was removed from the loaf of bread just leaving the cost of each loaf inclusive of all the growing, manufacture and transport costs, even allowing for some profit for all the processes involved how much would it cost? The answer to that question will astonish you. These calculations have been made by two chartered accountants burning the midnight oil and plenty of coffee. Coffee, cool: Here’s the answer. 85% of the cost of the loaf of bread is nothing but TAX: This means that if a loaf of bread costs £1 then the price on the shelf should be 15p. Ouch! Isn’t that amazing? Now take this example and apply it across the board. From a lollypop to a colour TV, to the tarmac on the road, to the cost of a house or a car. A £20K car would now be say £3K. Doesn’t that sound good, a £100K house would cost £15K. This is an economically valid example. Let it sink in for a while. ————————— There’s more. We pay 24% of our income out of our gross earning to the NHS. I know if you are employed you only pay 8% but you boss pays 16% and who do you think earns that 16%? You do, you pay your part of your bosses 24% as well. Now the NHS pays for a lot of things such as Hospitals and staff and medication and ambulances and unemployment from the department of works and pensions. And I hear the words “so what” well all that money is spent and the taxman rakes back in 85% of it.”

In one sense, perhaps the only real one, no one owns anything. Property, possessions, relationships, money can all disappear in a split second, we arrive with nothing and go out the same way. In another sense, we are more or less in the same boat, governments actually hold legal title to property and possessions which have been pledged to the Reserve Banks as collateral for government borrowings. People only hold equitable title to these things allowing them possession and use, while money, being gold and silver, was removed with the result that nothing can be paid for as there is no money in circulation. Federal Reserve Notes are promissory notes which take the form of IOU’s but are not backed by anything apart from the confidence of the people having no intrinsic value of their own.