I totally agree. It wasn't a rant at you by any means.
There does seem to have been a surge in protest that tax avoidance is bad these days.
I agree that if the system was simple there wouldn't be loopholes. I made a similar argument but was told that the sign of a developed economy is a complex tax model. Well I have no idea if that is right or wrong but if that is what the leading people think then we will forever have tax avoidance.
I'm freelance right now and I can go two ways, become Ltd and pay myself a salary, or be Self Assessment sole trader. Both models have pros and cons but there is a point where one is better than the other. In theory using one vs the other is basically a form of tax avoidance as it becomes tax efficient to be one rather than the other.
It pisses me off to be honest. If the system was simple they would SAVE so much in both creating these rules, enforcing them, businesses adhering to them, or looking for ways to avoid them. We probably spend a scary amount of GDP titting around because the tax system is complex.
If it were simple, there would be no avoidance, but it'd be fine because chances are it'd be cheaper anyway despite no avoidance because the system would be so efficient.
If government then wants to promote/discourage certain behaviours they can do it via non-fiscal policy.
Cripes, imagine how much is spent each year managing car taxes, co car taxes, all the accountancy, taxes on fuel, vat on all that. How much more economic activity would there be because of cheaper transport/logistics.
That alone would probably offset the loss in taxation via those methods, which are also costly to collect/administrate.
So I agree with your position. Make it simple, make it efficient, make it fair. 20% flat rate on everything as much as possible. Dump tax/benefits/incentives on EVERYTHING else. Tax economic activity proper at it's source and leave it at that.
Dave