The Chancellor’s Wife

A lot of words have been written about the Chancellor’s wife and her avoidance of tax through non-domicile status, while she receives large amounts of income generated in India. Most of the outrage is misguided. A country’s government has no legitimate claim on income generated in another country. It is up to the Indian government to levy taxes on income, received from activities in India, for the simple reason that the Indian government provides the framework of law and infrastructure which enables that income to be generated.

On the other hand, residents in a country ought to make a proper contribution to the cost of the services and protection they enjoy in that country. Both of these conditions are fulfilled when governments derive the bulk of their revenue from taxes charged on fixed assets, preferably an annual tax on the rental value of land.

Land isn’t going anywhere. What a pity it is that none of the righteous breast-beaters have noticed.