Thursday 17 May 2007

singularity

Singularity is the political philosophy of stripping the processes of government down to one layer. To some extent, whilst recognizing the need for the natural checks and balances of a bicameral system of government, it even supports the removal of extraneous layers of elected government (for example, in the UK, why have both borough and county councils?).

Where singularity really comes into its own is in the actual day to day workings of government. Singularity is based upon an assumption that government, and particularly the bureaucratic infrastructure of government, will naturally lean towards the proliferation and even outright duplication of its own workload. In the process, the activities of government are also obfuscated, and it’s the argument of singularity theorists that this is also in the interests of government at the expense of the population.

A typical beacon for singularity proponents is the flat rate tax system introduced in some of the Baltic States. They see this as a step towards pure singularity – one tax charged at one rate to all, with completely transparent allowances.
By contrast, the UK tax system is a typical example of rampant proliferation. Income Tax is charged at varying rates with various tax free allowances, and considerable sums are collected in taxation only to be repaid as benefits to the same taxpayers. A similarly complex system of allowances and reliefs surrounds Corporation and Capital Gains Tax. In addition, both employees and employers have to contribute to National Insurance. Large numbers of people pay and reclaim VAT (sales tax), as well as various other punitive taxes on certain goods and services, on selling houses and on death.

Singularity theory would scrap National Insurance and see the deficit raised through Income and Corporation Tax. It would scrap benefits for all but the poorest working people and increase the threshold at which people would pay tax in the first place (for example, child benefit would be scrapped, but the personal tax allowance of parents would be increased accordingly for one child and rather more for the second). Minor taxes would likewise be stripped out of the system and the deficits recouped from an increase in universal taxation.

Singularity’s supporters are the first to admit that such changes require a strong stomach and a willingness on the part of politicians to harm their own vested interests and open up their activities to greater public scrutiny. They also admit that in the first instance, many in the public would react unfavourably to changes which might seem unfair (for example, the rate of Income Tax might well go up, even if the net take by the Government remained the same).

But the benefits are clear to see. The government savings secured by stripping away layers of bureaucracy would be matched by savings in the business world from the removal of the need to deal with that bureaucracy. The economy would be leaner, more efficient and more prosperous as a result.

Likewise, the population as a whole would benefit from a system which was transparent and easy to understand, and it would be more easily able to hold the government to account (there is no place in which to hide “stealth taxes” in a singularity economy).

Unfortunately, whilst most politicians pay lip service to singularity – and they have little choice because the logic is unquestionably sound – none has so far shown the willingness to campaign on the issue or to carry through the scale of reforms that are mooted.

Plenty of politicians talk about the need for small and accountable government but in the final analysis they can’t help bolstering a system that treats them very well indeed.

(coming next - the people you know)