Yesterday, we learned “public sector net borrowing was £0.6 billion in July 2012; this is £3.4 billion higher net borrowing than in July 2011, when net borrowing was -£2.8 billion (a repayment)”. Compared to say May, when we borrowed £17.9 billion, £600 million seems relatively modest. It’s still the gross […]
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Cui bono? How much your labour costs and who receives the benefit
Brought forward from August last year. People on ordinary incomes still pay too much Each employee’s labour costs their employer a certain amount: their salary plus employers’ National Insurance Contributions (neglecting other benefits). How much does the employee actually receive to spend as they see fit? As a guide, we […]
Read MoreA judgment on tax avoidance
One of my colleagues passed on this quote regarding tax avoidance from about 80 years ago: Lord Clyde, President of the Court of Session, ruled: “No man in the country is under the smallest obligation, moral or other, so to arrange his legal relations to his business or property as […]
Read MoreCrony capitalism is so entrenched, we scarcely even spot it
The Transport Committee met today for an evidence session on low carbon vehicles. It illustrated that crony capitalism is now not merely entrenched and passed over, but borne out of the good intentions of a global regulatory elite. In the first session, we learned that “consumer demand is lagging policy”, […]
Read MoreArbitrary and capricious power anyone?
Successive governments have incentivised people to buy ‘greener’ cars which use less fuel. Apart from outrageously high fuel duty with 20% VAT on top, the other tool has been Vehicle Excise Duty graded to promote low CO2 cars. Having herded people down this road, apparently the Government now finds it […]
Read MoreThe moral case for lower, simpler taxes and a request for a debate
This week, the 2020 Tax Commission published its final report (PDF). Yesterday, Eamonn Butler wrote Don’t ignore the powerful moral arguments against high taxation. I recommend the whole article, but this section is particularly compelling: Tax reduces people’s ability to act morally. They might prefer to spend their money on helping their […]
Read MoreThe transformation of our society: the Labour vote and state spending
Two charts show how our society has been transformed in the last century or so: the party share of the UK popular vote and UK state spending as a proportion of GDP. Via Wikipedia, the parties’ vote shares since about 1830: And via 2020tax.org, an updated chart I have used […]
Read MoreNHS management pays over the odds with tax payers’ money
A recent Telegraph article reported that the NHS is paying “extortionate” prices for basic computer equipment and services. It showed that the NHS buys computer equipment at an average 28% more than wholesale prices. This is a shocking misuse of tax payers’ money and shows that the state is often […]
Read MoreWhat kind of government? Looking forward to the budget
Via the TaxPayers’ Alliance, this video explains vividly that the Government is spending £22,218 every second. In this week’s MoneyWeek, Merryn Somerset Webb’s editorial is titled “Slash spending and taxes”. She refers to Dr Tim Morgan’s work which explains that the economy has for too long been dependent on private […]
Read MoreThe injustice and error of a “Mansion Tax”
A so-called “mansion tax” may appear to embody a particular notion of fairness. One would think from the rhetoric that high-value homes all belonged to wicked billionaires, oligarchs and non-doms. One would think that owning such a home were inherently unjust. Far from it. Many valuable homes will have been bought […]
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