Speaking on the BBC’s Andrew Marr Show yesterday, Paddy Ashdown was at his most forthright on the subject of tax relief for charitable donations.
Paddy reminded Marr that he is the President of UNICEF UK, and therefore knows exactly how charities will be hit by the government’s proposal of a £50,000 or 25% of income (whichever is higher) limit on tax exempt donations from one individual.
But he told Marr that it is the poor who pay when tax monies are diverted excessively to charities. He said that he thought there was a sensible balance to be struck on this issue, and added:
…just imagine if everybody did this… no taxes, no hospitals, no schools, no welfare.
You can see a clip of Paddy speaking on this subject here.
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8 Comments
Paddy’s absolutly right – there’s a balance to be struck. I wrote about this the other day, suggesting we should switch reliefs towards Wealth Taxes and encourage redistribution of capital as well as income: http://oneexwidow.blogspot.co.uk/2012/04/question-of-tax-reliefs.html
Absolutely agree +1
Charities have a major role to play, but if everyone pays through charities, and tax take were reduced it would be the “popular” causes (especially those of richer donors) that would gain, and the less popular ones would lose out totally, unfortunately, I fear, leading to a less compassionate society. There is, surely, for a profoundly democratic party like ours, an issue of elected representatives of the people making decisions about the disposition of funding, not just by weight of donation?
Having litened to a Coalition spokesman (Today), waffling and dodging, this whole issue appears to be yet another example of the lack of ‘joined-up-thinking’ in the last budget.
The only bit thought through was the ‘50% tax reduction’; much of the rest (‘Pastie Tax’, ‘Granny Tax’,’Charity Tax’, etc.) appears to be have been worked out ‘on the back of an envelope’ by the “Quad” and their ‘advisors’.
The are private schools and hospitals already that are not funded by taxes so what Paddy says is clearly untrue.
Here’s a thought. Why not charge every company that sells goods/services to people in the UK a levy on their turnover in the UK at some “appropriate rate”.
Why not charge everyone a flat rate of income tax (with National Insurance subsumed into it) with a generous/reasonable personal allowance and very few means of gaining other reliefs?
Tax system too complex? Change it.
The government has a job to do and it needs money to do it. Tax relief for charitable donations means that taxes for those who don’t give to charities have to increase to make up the shortfall. So the relief has a similar effect to forcing us all to give to charities that we have not individually chosen to give to. In that respect, it seems illiberal, undemocratic, and unfair.
Perhaps the relief might be justifiable on grounds of EFFICIENCY or EFFECTIVENESS or ECONOMY – if the charity did what the government would otherwise have to do, but more effectively and/or at less cost. But does that happen? And are there any checks on it?
Paddy, incisive, perceptive, brilliant, as always..
Sorry Paddy you are so wrong, to give only a few examples: it was and is Charities that provided many hospitals with key pieces of lifesaving medical equipment that many take for granted. It is because of charitable associations and volunteers many of our schools are able to offer an education over and above that which the governments funding formula allows. Walk through many of our cities late at night and it is the Charities who are out on the streets and who’s door is open.
From the way Paddy speaks it sounds as if the Charity sector’s total income WILL dwarf the Treasury’s tax take unless urgent action is taken, obviously the man has lost his sense of proportion.
So Paddy (and any one else who opposes tax relief on charitable donations) answer the following:
1. Do you make Charitable donations?
2. Do you sign the Gift Aid form?
3. Do you enter the donation details on your tax return?
4. Have you always done the above?