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Kayt and Conning, the two Manx girls are now locked in intense discussion with KristalClear, and there, in the seat right next to her, right on the fringe of the girl power group is NutJob!
“That took some time” thinks Mr Rafone, knowing full well that it was inevitable that these two would end up together.
He also knows that if he can get Kayt and Conning to fall in line, which he will, then all of the girl power group will make a constructive contribution during this lesson.
“What exactly is the Work Impost?”
Complete silence!
Then Kayt pipes up, “imposters at work?”
“Nice try, but no. Let’s try an easier one. What is income tax?”
KristalClear responds immediately, “it’s a tax on income.”
“Yes, but we haven’t had that for over 200 years.”
He continues, “what’s a sales tax?”
Conning thinks she knows this answer, “a tax on sales?”
“Yes, and no. It’s a tax on purchases. Sales tax is not paid by the seller, it’s paid by the buyer. Why is there no income tax, and why is a purchase tax called a sales tax?”
“Why indeed?”
“In the turbulent years that followed the energy crisis, the Great Famine, the rise in sea levels, and the mass migration in search of clean water, all the new territories suddenly found that they needed a system of self government.”
“In what is now Wolfland a local government was formed, and they created the Chamber. The Penrith Nobles decided that they were going to keep taxes simple. There would be no tax on earning money, only on spending it. That way people can earn as much as they like, and spend as little as possible in order to pay almost no tax. Obviously people cannot live without buying things. Like food, and clothes. And businesses buy things. The Lancastrian has to buy paper and ink. Hence, the sales tax brings in a good deal of money.”
“A system was devised to keep things in equilibrium, just enough taxes to keep the economy buoyant, but not too much.
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