Tag Archives: taxation

Review of “The Joy of Tax” by Richard Murphy

Last year Richard Murphy, well-known through his involvement with the Tax Justice Network, expanded his ideas into a paperback book The Joy of Tax. His association with Jeremy Corbyn may cause Liberal Democrats to reject his ideas, but I argue here that even if we reject his solutions, which include both Basic Income and local Land Value Tax, we should take seriously his criticism of the existing tax system and his analysis of the purpose of taxation.

After a short historical introduction in which he develops the idea of tax as being the band that holds together the Social Contract between a people and their government, he examines how the Government raises its revenue. We are all familiar with the three big taxes: income tax, National Insurance and VAT, which together raise just under 65% of all taxation, national and local, but Murphy also looks at the large number of taxes that raise the remainder and the justification for them.

He covers six reasons why Governments should tax:

Posted in Books | Also tagged | 6 Comments

Time to start building for Britain

I am currently travelling for a year and am currently visiting India. This vibrant and growing economy has lessons for the UK. Everywhere you go there is building going on. New houses, new factories, new shopping complexes. In addition there is an ongoing repair programme for roads, public buildings, ancient monuments, temples. Sure, India still has slums, some schemes take an age to complete, but the thrust of the country is building for the future.

The government – at national, state and local level – is funding a lot of this work, in conjunction with the private sector and heritage and other charities and voluntary groups. What is clear is that government in all its forms has no problem with taxing its citizens and spending a chunk of the money on improving infrastructure, growing the economy, providing jobs and encouraging tourism. Compare that with Brexit UK. Governments of all hues have spent decades convincing us that tax is wicked and must under no circumstances be increased – especially for the rich – and that cuts in public services are vital for the health of the economy. As a result the building trade is on its knees, there is a chronic shortage of houses, public services are being trashed, the NHS is in crisis and vital infrastructure repairs and improvements are being put off into the distant future.

Posted in Op-eds | Also tagged , and | 14 Comments

Lib Dems to consider NHS tax #ldconf

The Liberal Democrats are to set up an independent expert panel to consider the case for a dedicated NHS and care tax,  Norman Lamb will announce in his Conference speech at Brighton later today.

Members of the ‘New Beveridge Group’ will include Dr. Clare Gerada, former President of the Royal College of GPs, Prof. Dinesh Bhugra, former President of the Royal College of Psychiatrists and current President of the World Psychiatric Association, Peter Carter, the former General Secretary of the Royal College of Nursing, and the chief executive of the Patients’ Association, Katherine Murphy.

It will report its recommendations to the party in six months’ time, presumably in time for Spring Conference.

Speaking to party members in Brighton, Lib Dem Health spokesperson Norman Lamb will say:

Posted in News | Also tagged , and | 15 Comments

Katy Gordon compares Lib Dem & SNP tax plans: “SNP fiddle at margins, Lib Dems choose to make Scotland great again”

Katy GordonYesterday the SNP revealed their tax plans for Scotland. They were, to be honest, the plans of a Government that’s cosy with being the Establishment, not of an insurgent movement wanting to bring change.  You’d have thought, after all their moaning about the 50p rat being reduced to 45p, that they’d have put it straight back up but, no. Having said that you could argue that we could have done the same thing given that we were forced into it by the Tories in coalition in exchange for the raising of the tax threshold for the lowest paid. However, in our defence, our Scottish plans for a zero rate for the lowest paid will involve tax rises for the richest.

The SNP plans not to raise the higher rate tax threshold – but that’s it. Other than that they will keep tax rates where they are. They wanted powers but when they are given them, they choose to tinker around the edges rather than use them for good. The cuts they have lumped on local authorities make their assertion that they are anti austerity sound hollow.

Over at the Scottish Lib Dems’ website, Katy Gordon, our lead candidate for the West of Scotland,  has given her analysis of the SNP’s proposals compared to ours. 

Posted in LibLink | Also tagged and | 5 Comments

Nick Clegg on the “utter nonsense” of Tory spending plans

In another strong demonstration of the differences between the Liberal Democrats and the Conservatives, Nick Clegg went on the Today programme yesterday to talk about deficit reduction and fiscal policy in the next parliament. While the Tories want to reduce the deficit by cutting spending alone, Liberal Democrats want to raise taxes on the wealthy.

From the Guardian:

Nick Clegg insisted taxes would have to rise in the next parliament. Speaking on Radio 4’s Today programme, he said: “What the Conservatives are saying is a complete and utter nonsense. There is not a single developed economy anywhere in the world that has balanced the books and only done so on the backs of the working-age poor, which Osborne has now confirmed several times he wants to do.”

As he set out his party’s plans to remove tax breaks for wealthy pensioners, Clegg also accepted that the public finances were not improving as fast as planned due to tax receipts failing to match forecasts, but he refused to say if this would require the coalition to put back its deficit plans.

He said: “If tax receipts are not as buoyant as predicted then of course that has an effect. Time will tell if that is a semi-permanent effect or a temporary blip, but it means it comes down a little less than predicted.”

Posted in Op-eds | Also tagged , and | 39 Comments

Opinion: No taxation without explanation – tax summaries are welcome but flawed

budget breakdownStarting yesterday, and over the next month or so, ‘tax summaries’ will be delivered to 24 million taxpayers, detailing how much income tax and National Insurance they paid in 2013-14, and where that money went. You can see examples here.

As Nick Clegg said in 2012, this will deliver “greater transparency accountability in government … empowering citizens” with information on what they pay in, and how their taxes are spent. It sounds rather like the ‘Annual Tax Contract’ policy from the party’s manifesto in 1997 and 2001:

No taxation without explanation: Central Government should inform taxpayers of the ways in which their money is raised and spent, just as local councils now do.

You can draw your own conclusions from the pie chart on the right, but it looks like these annual tax summaries will be important.

Posted in Op-eds | 25 Comments

NHS under pressure across whole UK – how do we fund the health service we need?

StethoscopeA clinical commissioning group in South Warwickshire was heavily criticised last week for suggesting that it might charge patients for use of mobility aids like crutches, walking sticks and neck braces.  A rather hyperbolic Guardian column screamed that this was the “first painful step towards the dismantling of the NHS” which seems a bit strange given that they’ve been telling us for the past two years that the NHS had been all but privatised anyway.

The furore over this idea made me think, though. While you don’t and never should …

Posted in News | Also tagged and | 41 Comments
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