Tag Archives: tax

Corbyn’s pay cap plan boosts the rich, not the poor

As usually happens when hard line Socialist utopias are created, Jeremy Corbyn’s maximum pay plan would help the rich not the poor.

That is because when employees reach the maximum, other ways would be found to reward them which would increase inequality and reduce the tax take from the rich.

In Soviet Russia access to the splendour of the Bolshoi Ballet was a perk for the wealthy. The poor weren’t helped, and no tax was collected on the perk.

So it would be if Corbyn got his way.  Employers would pay bonuses, perhaps in shares or profit share, when they can’t pay extra cash. The thing is, shares or profit shares, when sold, are liable to Capital Gains Tax, not Income Tax as wages are, and the capital gains tax rate is lower than the income tax rate above £140,000. 

Posted in Op-eds | Also tagged and | 23 Comments

Taxing multinationals

It’s time multinationals paid more tax. And the way to do that is with a point of sales tax.

Tax avoidance is huge. Take Google: The company generated more than GBP17billion in UK sales between 2005 and 2013, but paid only GBP52 million in Corporation Tax on UK profits for that period. Even George Osborne’s subsequent back taxes deal with Google, announced earlier in 2016, netted only an additional GBP130million, including interest.

Posted in Op-eds | 35 Comments

Rennie’s penny on tax for education is progressive – IPPR

The Institute of Public Policy Research Scotland has been looking at the parties’ tax plans ahead of the Scottish parliament elections.

The SNP has had a go at us for raising the basic rate of tax for workers, making out like they are protecting the low paid. In fact, IPPR says that our plans are progressive and will deliver what we say they will.

 Willie Rennie has welcomed this conclusion.

The IPPR shows that the Lib Dems’ penny (why do we not call it Rennie’s penny?) for education will raise £475 million a year, with almost half of that revenue coming from the richest 12%.

The IPPR research also shows that the Conservatives’ plans help the richest, giving those on highest incomes an extra £390 a year.

Willie said:

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Tim Farron on tax: “We must not miss this opportunity to change the system”

Tim Farron by Paul WalterTim Farron has written a note about tax on his Facebook page. As party leaders publish their tax returns, (including Willie Rennie, that’s 5 minutes of your life you won’t get back if you choose to read this unremarkable document), he says that it’s actually the system you need to change. He’ll publish his in the next few days, but that is not really the point. Here are his comments in full:

The politics of envy helps no-one, but trust in politics does.

I have no desire to poke around in the Prime Minister’s private wealth, and definitely have no desire to force him to relive the pain of losing his father, having to confront that time all over again through the pages of national newspapers.

It is absolutely essential that British people have full confidence in our leaders, and that when decisions are made and Budgets are written there is not even a slightest hint of a conflict of interest or personal gain. But we are now in a position where people no longer have complete faith in this Government’s decisions.

Trust in politics and our ability to get things done is taking another hammering. It’s an poor indictment of our political system that the demand is now so great for the public to see politicians’ tax affairs. Are we now in a world where there is an assumption that a politician is doing wrong, or is playing the system?

Posted in LibLink and News | Also tagged , , and | 17 Comments

WATCH: Alex Cole-Hamilton on tax, education, glaciers and the SNP’s “magic tractor”

This week, Edinburgh Western candidate Alex Cole-Hamilton took part in a debate on Scotland 2016 on tax.

Here are his highlights. I think my favourite was the “magic tractor.”

Scotland 2016 Tax Debate

Last night Alex Cole-Hamilton took part in the Scotland 2016 Tax Debate. If you missed it – catch the highlights below, including John Swinney's magic money tractor and our plan for education:

Posted by Scottish Liberal Democrats on Wednesday, 6 April 2016

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Should politicians publish their tax returns?

Here’s Tim Farron telling Sky News on Friday that he is going to release his tax return, regardless of whether anyone else does. He said he made his decision because he thought that people had “a right to have their confidence in their leaders enhanced and not further diminished.”

Tim Farron: “I’m Going To Publish My Tax Return”“It’s up to him. I’m going to.” Liberal Democrat leader Tim Farron on whether David Cameron should publish his tax return.

Posted by Sky News on Friday, 8 April 2016

And so, David Cameron has now published his tax return. It doesn’t really tell us anything that we didn’t know already. We discover that he’s a rich man. We discover that he and his wife get more in rent for their Notting Hill home every year than some of our homes are worth. They are getting in more than £7,500 per month.

Posted in Op-eds | Also tagged , and | 34 Comments

Let’s all defer our tax liability for a year, shall we?

So we have another instance of a large corporation deciding how much tax it’s going to pay. Why does the Government let companies like Facebook, Starbucks, Amazon and Google get away with this?

It’s another example of where being rich and powerful gets you special treatment. The BBC reported:

After heavy criticism that it was avoiding tax, the BBC can reveal that profits from the majority of Facebook’s advertising revenue initiated in Britain will now be taxed in the UK.

It will no longer route sales through Ireland for its largest advertisers.

That includes major businesses such as Tesco, Sainsbury’s, consumer goods firm Unilever and advertising giant WPP.

Smaller business sales where advertising is booked online – with little or no Facebook staff intervention – will still be routed through Ireland, which will remain the company’s international headquarters.

I am told the change will mean that Facebook will account for substantially more revenue in the UK and will therefore pay a higher level of corporation tax on the profits it makes here.

Corporation tax is levied at 20% on the profits a business makes.

The changes will be put in place in April and Facebook’s first, higher, tax bill, will be paid in 2017.

Posted in News | Also tagged , and | 6 Comments
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