The cashless society
Why they want it. How they'll get it.
This is a short series on the cashless society, why the government want you to do away with cash and how they will achieve this.
Why they want it.
The government wants your money. They took 529 billion pounds in tax in the 2011 financial year. This was 36% of Gross Domestic Product.
And what do we get in return? Membership of the European Union, Foreign wars, a generation of people living on benefits, uncontrolled immigration, seven million public sector workers and many more whims and hobby horses of our governing elite.
Oh, and 'essential' public services.
The government needs ever more of your money to continue their waste. They say we have a moral obligation to pay taxes. I think the opposite is true.
They are also looking for ever more ingenious ways to take more tax from us. The best possible way for them to do this is to have us all move away from the use of cash and start to move our money through the use of electronic transactions.
Why? Because they can be monitored, and even better, tax can be taken at source.
If you are not self employed, when was the last time you had the opportunity to hold your money in your hand before you gave it to the government as tax? Probably never. Tax is taken from our wages at source in the form of PAYE - Pay As You Earn.
We don't even get to touch it before they take it from us.
What would compliment PAYE very well is the concept of Pay As You Spend. Many businesses still operate largely with cash, restaurants, bars and hairdressers for example. Most personal transactions between friends and acquaintances are also done with cash.
When you hand over a couple of quid (or more) for a pint of beer, the government then has to rely on the bar where you spent your money, to declare that taking and pay some of it to them in tax.
Would it not be better if the tax element could be deducted electronically at the moment you pay? Of course it would. Any payment through electronic means, cash / credit card, is logged so that the Inland Revenue know about it and know how much tax is owed. This is not the case with cash. Cash transactions are untraceable.
Imagine a cash card system where 25% is deducted from every transaction and passed directly to HMRC. Total tax compliance. Once cash is removed from society and all transactions are electronic, even those among friends can be taxed at source.
If I were to fix your car for you and you gave me twenty quid, in the cashless society, I would have to produce my card reader and you would have to produce your card. Once the transaction was complete, only fifteen pounds would make it into my bank account, the other fiver would go directly to the government, just like PAYE.
Even if they don't go as far as deducting tax at source, which I doubt, every transaction will be logged in a computer somewhere. The government will be aware of every penny that has moved from person to person.
All electronic transactions are currently logged in computers by banks and the government has access to all this information if they want it. Further than that, all cash movements over one thousand pounds must be reported to the Inland Revenue. The penalties for not doing so are harsh. These penalties are not levied at the banking corporations, but the individual who was responsible for reporting the transaction.
This system has bank employees scrambling over themselves in their haste to report you to the government.
The smokescreen is drugs and money laundering, the reality is that 99.99% of these transactions are perfectly legitimate.
There is nothing more a government wants than total tax compliance. Once they have convinced us that cash is no longer valid in a civilised society, they will get just that.
Next week: Control of your movements.
How the government can monitor and even control all your movements through electronic money transactions.
The cashless society