nrc wrote:
Oddly, the DVLA still refer to it as road tax(road fund licence), perhaps because that's how most of us see it, but your quite right tho'. However, refering to my question, if there were 30 million 'green' cars, then where would all that road building money come from?
This hypothecation idea is loathed by politicians, because it constrains them. National Insurance is the same. It all goes in the same pot.They are then free to spend money on buying votes. They use notional hypothecation when they bring the idea in, to give people the idea that things are fair, but they silently drop it after the first budget.
One way to deal with it is to pass an act, outlawing taxation hypothecation. After a while, special cases would drop off, because the public could be certain that all tax is central, whatever lies the politicians speak. We could then have a sensible debate on how to the spend money where it is needed, rather than get blindsided by irrelevant details relating to where it came from in the first place.
Alterntively, we could pass an act to compel any government product that purports to use hypothecation to actually be hypothecated. That would mean TV license, Road fund, NI, etc. Would that do the trick?