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Tax at root of EU squabble

The present EU squabble has, we would suggest, come about primarily because contemporary tax systems are not sufficiently robust. From an economic perspective, they are little more than a structure of fines and penalties for successfully engaging in legal economic activity. This sends a particular message to which people in different strata of society will respond so as to turn the situation to...

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Our Plan B

Now that the policies the Chancellor first thought to apply are failing to work as intended, he is adopting an incoherent collection of ad hoc measures. It is starting to look like a panic response. It is dangerous. We would not expect him to take steps to apply LVT as we would wish to see it. It is not in the Tory DNA. But the principles from which we are working would nevertheless point to a set...

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DimLambs declare war on fat cats

“It will all be over by Bonus Day,” says top brass. Speaking from their heavily fortified bunker in Birmingham, the top brass of the DimLambs announced that they were preparing all out battle on wealthy fat cats, and were on the warpath against the evils of corporate greed, tax avoidance and tax evasion. General Mick Cloggs and his deputy Colonel ‘Invincible’ Cobbles made...

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LibDems propose property tax reforms

The LibDems are proposing some form of property tax reform. To judge from reports in the newspapers, at this stage it is not clear what is being suggested, which indicates the confusion about the whole topic. More details will doubtless emerge at the autumn conference. It would be nice to think that they are at the very least going to argue that all taxes presently falling directly in property –...

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Mansion Tax raises its ugly head again

Partly in the wake of the riots, Liberal Democrat leader and Deputy Prime Minister Nick Clegg, has insisted that the Liberal Democrats’ plans to cut taxes for low-paid workers must come before Tory plans for tax cuts for those at the top. George Osborne, the Chancellor, has suggested that the 50p tax rate is “economically inefficient” . Senior Tories want to cut the higher rate...

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A homeopathic dose of LVT

“Making the change revenue neutral should avoid opposition from Treasury and minimise increases for those required to pay more.” (comment in a discussion on implementing LVT) Do were really believe in what we are proposing? Some people need to pay more tax because many others are paying too much at the moment, often to the point that it is not worth employing them at the margin, and...

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A neat coincidence

“If they are making money in UK, then they should pay UK tax.” (comment on a newspaper article) “Should pay” is one thing, “Can actually be made to pay” is another. The rights and wrongs of it are something else again, because whether people ought to pay tax depends, surely, on how the money is “made”? It is immoral and harmful to for the state take...

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An exchange of comments

I reproduce this exchange from the Guardian’s Comment is Free pages, commenting on an article by Peter Wilby on paying for care. I am sure, however, that there is no argument under the sun that could convince the author of the comments (in italics), who seems to have got out of bed on the wrong side this morning and is showing signs of irritation.

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Ageing population puts pressure on exchequer

Further tax increases or spending cuts are likely to be needed after the current fiscal consolidation to help meet the budgetary costs of an ageing population, according to the first long-term Fiscal sustainability report from the Office of Budget Responsibility. What can this mean for us? The Coalition for Economic Justice, to which the Campaign is affiliated, is at present engaged in an attempt...

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