Tag Archives: multinational

Trump trade war threat over tax shows the drawbacks of globalisation

A family at war? They may look and act the same, but that doesn’t mean Donald Trump won’t attack Boris Johnson if he feels like it [Composite: Laura Tisdale/Twitter].

This is awkward, with Boris Johnson desperate to get a trade deal between the UK and the USA.

Donald Trump is threatening reprisals if Johnson goes ahead with a plan to tax US tech corporations like Google and Facebook on profits they make from UK customers.

This Writer understands that it is possible to prevent foreign tech companies from operating in the UK – don’t China and North Korea do this?

But if the UK did this, then the US government could impose crippling sanctions on this country.

The simple fact is that Trump has Johnson over a barrel.

And where Trump goes, others will follow. The loss to the UK’s tax take must be staggering.

And it’s all in line with Conservative economic policy.

Ever since Thatcher, Tories have demanded that businesses across the world must be able to operate across the world if they can, but must be allowed to operate from the country of their choice.

And that’s where they are taxed.

I suppose the answer was to demand that these multinationals set up subsidiaries in the countries where they operated. But wasn’t that the situation before Thatcherism?

It seems the Tories deliberately harmed the UK economy with this policy.

Can anybody explain the thinking that supported this economic disaster?

Source: Trump administration threatens trade war with UK over digital tax plan | The Independent

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Take action against Tories’ harmful policies by hitting them in the wallet

westminsterfromwater

People across the country will be taking part in a different kind of protest – on the day of the state opening of Parliament.

May 27 will be the first National Switch Off Day, when thousands of people have already pledged to stop using gas and electricity, and stop shopping in non-local shops for 24 hours.

Organised by a varied group of campaigners, this will be the first in a series of multi-issue actions that will take place once a month. Reasons for taking part range from keeping the NHS public and tackling issues like overpriced parking in hospitals, to stopping benefit cuts, to issues affecting vulnerable people and their carers such as the cold weather benefits to the elderly, to keeping the Human Rights Act, to stopping fracking – and mostly that all members of the general public get a voice in matters that concern them.

Paul, a single parent with two sons, said: “Traditional protesting on the streets is fine but it doesn’t affect the government, banks or big corporations. It’s time to switch off and hurt them in the pocket. No electric. No gas. No spending money. Whatever your protest, let’s unite for one day a month and switch off.”

Brenda, an organiser of the action, added: “David Cameron: this country is unsettled. You are giving your MPs a wage increase, but what about the people? Low wages and queuing for food? For God’s sake, this is 2015 – not 1915!

“We need faith in our government and we haven’t had that for 53 years. I’ve voted in all elections, I’m 71, and the last one was nothing but a sham. I’m ashamed of them all. They are bringing this country to its knees.”

And Suzanne made clear: “Rather than being the action of sore losers who are disgruntled at a single election result, this is the culmination of more than five years’ building resentment towards a group of people who seem only to represent a minority of wealthy people in this country.”

With only 24 per cent of the electorate represented by the current government, organisers said it seems that the other 76 per cent may be keen to give up their home comforts for one day a month to show their displeasure, and hope that some kind of dialogue can be made between the government and the people who will be hit hardest by its cuts.

This is an important start.

We should also be building up a database of business interests held by Conservative donors and MPs, ensuring that they do not receive our business. Beyond that, we should also consider boycotting firms that receive government contracts.

Apathy doesn’t work. It would be madness to sit back and let them carry on – and paying them for what they’re doing.

Think about it. And please join the day of action. May 27 is Wednesday.

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A simple plan to get Labour back on track

Harriet Harman: Will the acting leader of the Labour Party listen to pleas from the grassroots to get Labour back on track?

Harriet Harman: Will the acting leader of the Labour Party listen to pleas from the grassroots to get Labour back on track?

If the Labour Party is to regain the confidence it has lost, it needs to re-state its identity with a core message of purpose – one that not only encapsulates what Labour is about, but also what it opposes.

That is what was missing from Labour’s general election campaign, and is as much a reason for Ed Miliband’s defeat as the Conservative campaign, which was not based on objective facts but on political spin.

In a nutshell, it is time to remind the voters and the public that Labour is the enabling party. This creates a clear contrast with the Conservatives – the party of restriction.

So, for example, with the National Health Service, Labour should support a service available to everyonefree. That means no private involvement. With the Tory privatisation in full swing, funds are being restricted and so are services. The NHS is now a postcode lottery, with care allocated on the basis of profitability. That’s not good enough; the privateers must be told to jog on.

Education must also be available to everybody, up to the level each person can achieve (or wants to). Again, this means there should be no charge for state-provided services. A state school system has no place for privately-owned ‘academies’ or ‘free schools’. These are Tory devices; the private sector will, by its nature, restrict access in order to extract a profit. It also means no tuition fees for students in further/higher education.

Labour should be helping anyone who wants to start a business, by ensuring there are as few obstacles in the way as possible; it must be the enabling party. That means, for example, a graded taxation system, with lower business rates and taxes for start-ups, progressing to a higher rate for medium-sized enterprises, and a highest rate for multinationals – who should be taxed on all takings made in the UK; no excuses.

Another part of the enabling agenda must be ensuring that people can pay a minimum price for things we cannot live without: Accommodation, services, utilities.

There is now an appalling shortage of appropriate housing for many people – mostly because the Tories sold off so many council houses and did not replace them. This is why the Tories were able to impose the Bedroom Tax on so many innocent people – a restrictive idea, intended to push people out of some areas and into others; shifting Labour voters out of places the Tories didn’t think they should have to share with the riff-raff, you see – a gerrymandering tactic to make those constituencies easier to win in elections. The solution is simple: Build council houses again.

When the utility companies – gas, water and electricity suppliers – were privatised, we were all promised that household bills would be kept down by more efficient private-sector business models and private investment. That has not happened. Instead, consumers have been held to ransom by a small cabal of corporations who have been able to charge rip-off prices. Remember the electricity price scandal of 2013? Who told those firms to quit their restrictive practices and cut bills? Labour. The enabling party. The fear of a Labour government imposing new rules in the consumer’s favour helped hold the greedy private bosses in check for a while, but now we have a Conservative government. How long do you think it will be before prices soar? This Writer reckons they’ll take the first opportunity. Even now, after Labour managed to secure price cuts, the poorest families still have to choose between heating and eating during the winter (the phrase has been used so often it is now a modern cliché). This must not be allowed to continue and the solution is clear: Re-nationalise. There are even two bonus factors in such a plan: Firstly, as many of these utilities are owned – or part-owned – by firms or governments based abroad, it will ensure that our bills pay people in the UK rather than boosting foreign economies at the expense of our own and, secondly, takings will help the UK Treasury balance the books.

There is at least one other privatised service that could also be re-nationalised: The railway system. Prices have rocketed while government subsidies have also soared, since the system was turned over to private hands in the early 1990s. This is madness; it is a huge drain on resources and must not be allowed to continue. We should re-nationalise and follow the example of Northern Ireland, where the service was never privatised and where any profit is ploughed into improvements, not profit.

Then there is our grocery bill, which keeps escalating. This is a particularly thorny subject as, for example, farmers are being ripped off by supermarkets over the price of milk, but the same corporations will happily send apples to the other side of the world and back, just to have them polished. It’s time to straighten out that system as well – although it will take a while.

So this is how Labour should frame its arguments from now on: Labour enables; the Tories restrict.

It should be stressed that the themes raised above are just starting-points which occurred to This Writer while considering the issue last night. The above is not an exhaustive list. Undoubtedly there are many more.

Your comments are invited.

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NATO and the Economic Exploitation of Eastern Europe – Beastrabban\’s Weblog (and Russell Brand)

NATO expands: On the left, the situation in 1990; on the right, the scene in 2009 - NATO expanded right up to Russia's borders.

NATO expands: On the left, the situation in 1990; on the right, the scene in 2009 – NATO expanded right up to Russia’s borders.

Isn’t it interesting, how concepts coincide?

Only last night I read, in Russell Brand’s Revolution: “When Mikhail Gorbachev, who it turns out was a lovely fella who bent over backwards to prevent nuclear war and deserved to be remembered for more than that birthmark on his head, allowed a unified Germany to enter NATO, a hostile military alliance, on the condition that ‘NATO would not expand one inch to the east,’ the US agreed. Then they expanded right into East Germany, likely giggling as they went. This dunderheaded truculence persisted under every US regime change… Clinton in his tenure expanded NATO right up to Russia’s borders. Chomsky says all this aggro we’re having today in the Crimea and Ukraine is because of these unreported acts of military expansionism by the West.”

Now here’s the Beast: “I … found this little piece in ‘The View from the Bridge’ column in Lobster 45, reproducing statements from elsewhere that NATO was being used to exploit the former eastern bloc countries that have joined it after the fall of Communism. Although over a decade old [bolding mine], it’s relevant now as we are in period of diplomatic tension with Russia over the civil war in Ukraine. This has been presented as a case of pro-Western Ukrainian patriots attempting to free themselves from Russian domination. The reality is somewhat murkier, as the pro-Western side themselves were guilty of considerable corruption. It also includes open Neo-Nazis.”

The stories quoted are about NATO bullying eastern European countries into selling off their national economic assets to foreigners and spending huge amounts of money on US-manufactured military hardware, under threat of losing a place in NATO military committees and command structures.

The Beast writes: “This makes you really wonder what the reality behind the ousting of President Yanukovych in Ukraine really was, and who was supposed to benefit: the Ukrainian people, or Western multinationals.”

And now Greece is rolling back the privatisation programme imposed by the West, against hugely unreasonable – yet mounting – opposition from the Troika and Western right-wingers.

The UK, it seems, is on the side of NATO, and – as long as we have a right-wing government – the privateers. This leads to a very worrying question:

When did we become the bad guys?

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Don’t be naive, Len – Cameron WANTS to lock privatisation into the NHS

140703NHS-TTIP

Unite’s secretary general Len McCluskey would be naive indeed to think David Cameron is ever likely to heed his call for the National Health Service to be kept out of the EU/US Transatlantic Trade and Investment Partnership.

McCluskey has warned that the NHS could be sued by American healthcare multinationals if a UK government tried to return services to state control; they would argue that such renationalisations interfered with their potential profits, in breach of the trade agreement, as has been discussed on this blog in the past.

His appeal misses the point. The entire thrust of Coalition government policy is to ensure that the NHS becomes vulnerable to just such pressure, in order to ‘lock in’ the privatisations inflicted on us by Andrew Lansley’s horrifying Health and Social Care Act 2012.

One has to look no further than Vince Cable for confirmation of this. The Whig business secretary (you can’t call him a Liberal Democrat any more, and as a commenter pointed out today, the government as a whole behaves more like the old-style Whig Party from the 19th century. If the cap fits…) told The Independent: “There is no suggestion whatever that the TTIP negotiations could be used to undermine the fundamental principles of the NHS or advancing privatisation.”

What he means by this is that – as far as he is concerned, advancing privatisation is a fundamental principle of the NHS since Andrew Lansley’s hateful Act of Parliament. Therefore the TTIP agreement can only contribute to that project.

He said: “Our focus for health is to enable our world-class pharaceutical and medical devices sectors to benefit from improved access to the US market.”

If we have world-class healthcare already, why do we need access to a market-driven system that can only drag us down into mediocrity? Clearly he is not talking about healthcare at all; he is talking about the health service as a source of profit. The “benefit” he describes can only be profit – income for shareholders in private companies that could not be accrued while they were excluded from NHS work.

Everybody involved in this betrayal should be imprisoned as a traitor, with Cable and Lansley first to be sent down.

Searching for silver linings in the Euro election’s purple cloud

No cause for celebration: This man is now the leader of the largest British political organisation in the European Parliament.

No cause for celebration: This man is now the leader of the largest British political organisation in the European Parliament.

Could the Transatlantic Trade and Investment Partnership be sunk off the coast of a new, anti-federalist Europe?

It seems like a natural consequence of the election victories enjoyed by Eurosceptic and far-right parties across the continent – and one of the few reasons to be optimistic about the result.

We don’t have all the information yet, so it is impossible to be sure, but it does seem likely that people who won popular support by emphasising national sovereignty against that of the EU will be against a trade agreement that suppresses nations’ rights to make their own laws, and puts multinational corporations above countries.

Unfortunately UKIP, the British Eurosceptic party that has won 23 seats (so far), seems more likely to support the agreement that would force British workers into lowest-common-denominator working conditions and pay deals, in a betrayal of the populist promises it made to get elected.

Nigel Farage’s campaign took a leaf out of the Conservative Party’s book by hiding some of UKIP’s most unpalatable plans from the electorate; now that he has what he wants, will we see UKIP working to ensure, for example, that National Health Service privatisation is locked into British law? That would require support for TTIP.

If Farage’s party doesn’t support the controversial plan, they’ll probably stay away from the vote (as they do in most matters; UKIP has one of the worst attendance records in the European Parliament).

Of course the European Parliament doesn’t work the same way as the UK Parliament; UKIP may have won the most seats but this does not automatically hand it power – 23 UK seats is only one-third of those available, not a majority, and it will have to join a larger grouping in order to make its voice heard.

UKIP’s choices over the next few days and weeks will be crucial, as they will allow us to form opinions about how the party’s victory will affect life here in the UK.

The Eurosceptic party’s victory – the first time in more than 100 years that an election has been won by someone other than Labour or the Conservatives – means the other British political parties have more soul-searching to do.

Labour came second, defying right-wing pundits on the BBC and elsewhere who were hoping to see “weird” Ed Miliband suffer. But his lead over the Tories is just 1.5 per cent – hardly a ringing endorsement.

Clearly the British people were not convinced by his offer and Labour must revise its position on Europe or prepare to lose the next general election.

A good starting-place for the Party of the Workers would be a promise to halt the flow of migrant workers from EU countries with weaker economies by pushing for a change to the rule allowing free movement between countries – ensuring that this only happens between states that have comparable economies.

This would put an end to the economic opportunism that has caused the perceived flood of migrants from the poorer countries of eastern Europe, and make it possible for British people to get better jobs, offering more working hours – and negotiate for higher pay.

It isn’t rocket science, but Labour has failed to grasp this concept. One has to wonder why. Maybe Labour is still a bit too fond of Conservative-style neoliberalism. Is that it, Ed?

Labour’s problems are nothing compared with those of the Conservative Party. David Cameron wagered that his promise of an in/out referendum on the EU, to take place in 2017, would win him the next UK general election – but this result has shown that the British people don’t believe a word of it.

Rather than be held to ransom by an over-privileged nob, they have turned to an untried party of even more hard-line right-wingers who would probably create worse problems for working Britons than even the Tories, if they were ever elected into office in Westminster.

That is the message David Cameron has to swallow today: We don’t believe him. We don’t trust him. We don’t want him.

Yet his party seems unrepentant. Prominent members have already rejected calls to strengthen the referendum offer, for example.

The loss will make Cameron more likely to seek a deal with UKIP – and one is already in the offing, if we are to believe the denials coming from other leading Tories. This would be to UKIP’s disadvantage as Farage only needs to look at Nick Clegg to see what will happen.

Clegg should be a broken man. Not only have the Liberal Democrats haemorrhaged local councillors, but now he also has to face up to the fact that he has lost all but one of his party’s MEPs.

The BBC said the survival of Catherine Bearder in the South East region prevented a “humiliating wipe-out” – but isn’t the loss of no less than nine MEPs humiliating enough?

Clegg is already facing calls for his resignation amid claims that nobody wants to listen to him any more. This means the turnabout from “I agree with Nick” in 2010 is now complete. Anyone considering going into coalition with the Conservatives (Farage) should pay close attention. The British voter hates traitors.

There is one more matter arising from this result; a fact that you are not likely to hear on the mainstream media, but one that seems increasingly important, considering the demise of the Liberal Democrats.

The Green Party was fourth-placed in this election. Its 1,244,475 (so far) voters mean it had two-sevenths of UKIP’s support, while the Conservative Party – the party in power here in the UK – had only three times as many supporters.

Expect Natalie Bennett and Caroline Lucas to capitalise on this for all they’re worth.

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How do we wrestle fairness from a rigged economic system?

The problem in a nutshell - and this cartoon was drawn in 1972! [Image: Alan Hardman]

The problem in a nutshell – and this cartoon was drawn in 1972! [Image: Alan Hardman]

It’s terrific when an article makes you think.

Why Capitalism needs unemployment, by Cheltenham & Gloucester Against Cuts, tells us that unemployment is used as a weapon against the workers – with the threat of it used to force pay cuts on employees, while we are told to fear inflation if unemployment falls.

So fatcat company bosses win either way, it seems.

The article commented on Margaret Thatcher’s ideological mentor, Milton Friedman, who “understood that low levels of unemployment give confidence to workers, who can fight for better pay and conditions. When they’re successful, the profit margins of capitalists are reduced, causing them to put their prices up in response“.

We know this happens; we have seen it many times. Some may argue that it is different from cases in which shortages of particular commodities push up their prices and the prices of products that are made from them – but, with fuel prices as the only notable exception, have you ever seen prices drop after these shortages end?

The system is rigged to ensure that working people stay poor, either through pay cuts during high unemployment or inflation in low unemployment; meanwhile the employers and shareholders ensure that they stay rich, by sharing out extra profits gained by keeping pay low or by putting up prices.

What do they do with this money?

The answer, it seems, is nothing. They bank it in offshore tax havens and leave it there. This is why, we are told, Britain’s richest citizens have more than £20 trillion banked offshore at the moment.

That’s more than £20,000,000,000,000! Enough to pay off this country’s national debt 18,000 times over and still have plenty to spare. Enough to solve the problems of the world, forever. It is, in fact, more money than we can comfortably imagine.

It is doing nothing.

Faced with this knowledge, there can only be one logical question: Why?

Why rig the system so that ever-larger sums of money pour into these offshore accounts, if nothing is to be done with it? Where is the sense in that?

The only logical answer appears to relate to its effect on workers: Keeping the profits of their work away from the workforce means they are kept in misery and servitude to the ruling classes – the parasitical board members and shareholders.

There are knock-on effects. Taxpayers are hit twice – not only are they forced to grapple with ever-more-hostile pay offers, but their taxes pay for in-work benefits that subsidise corporate-imposed pay levels; they support people who have been forced into unemployment unnecessarily and the silly make-work schemes that are forced on those people by the Department for Work and Pensions, under threat of sanction.

It’s a protection racket. There should be a law against it. And this begs the next question: Why isn’t there a law against it? How can this corrupt system be dismantled and what should replace it?

That’s a very good question, because the other cosh being held over our collective heads is the possibility that firms will move abroad if new laws in this country threaten their massive profits. This is where an international agreement between nations or groups of nations would be very useful, if it was carried out in the right way – a Transatlantic, or Trans-pacific, Trade and Investment Partnership, perhaps.

And what do we see? Plans for such agreements have been put together and they do the exact opposite of what they should – tying the workers into ever-worsening conditions. This is why the TTIP, currently being pushed on the European Union, must be rejected – and why bosses will do anything to ensure it succeeds.

This is the situation. It seems clear that nothing will change it for the better until somebody has the courage to stand up to these manipulators (who were probably schoolyard bullies back in the day) and say enough is enough; change is coming – do what you will.

Tax evasion and avoidance is already a huge issue here in the UK; perhaps we need to make a criminal offence of manipulating the economy – with prison sentences for bosses who put their prices up purely to retain high profit margins when their salaries are already dozens of times higher than those of their workers.

But what else is needed? How can such a mechanism be brought in without scaring off business? Or should we let them go, and put something fairer in their place? Ban them from trading in the UK unless they conform to the new model?

These are ideas that need exploration – by many people, not just a few.

What do you think should happen?

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Now the Tories want to sell your tax details to private firms

[Image: The Guardian.]

[Image: The Guardian.]

Not happy with its attempt to sell your health details to private companies, the moneygrubbing Conservative-led Coalition wants to sell off your personal tax data to companies, researchers and public bodies.

The government is considering how much to charge for the information, and claims that all data accessed by third parties will be “confidential”.

But the public has already been stung once by the Coalition’s incompetent attempts to go commercial. The proposed initiative to share NHS medical records with the private sector had to be suspended after a public outcry over “pseudonymised” data – a process by which medical records were said to be anonymous but it was in fact possible to trace exactly whose they were.

The plans for HM Revenue and Customs to share its data are, apparently, being overseen by Treasury minister David Gauke, whose relaxed attitude towards private firms led him to sign off on the infamous “sweetheart deals” that allowed multinational companies to keep billions of pounds of tax that they owed to the Treasury but didn’t want to pay.

Worse still, it turns out the government has already allowed private firms access to our data.

The government has strict rules about what can be released outside HMRC, with a near total ban on data sharing unless it is beneficial for the organisation’s internal work. But according to The Guardian, despite the restrictions, HMRC has quietly launched a pilot programme that has released data about VAT registration for research purposes to three private credit ratings agencies: Experian, Equifax and Dun & Bradstreet.

To comply with the law, the private ratings agencies, which determine credit scores for millions of people and businesses, have been contracted to act on behalf of HMRC and are “therefore treated as part of the department” – giving them access to tax data about businesses that would otherwise be confidential.

The government’s plans to change the law to allow the sale of anonymised individual tax data and release of the VAT register were buried in documents as part of the autumn statement and recent budget.

An HMRC spokesman told the BBC: “HMRC would only share data where this would generate clear public benefits, and where there are robust safeguards in place.

“Last year’s consultation made it very clear that there would be a rigorous accreditation process for anyone wanting access to the data and that any access would take place in a secure environment.

“Those accessing data would be subject to the same confidentiality provisions as HMRC staff, including a criminal sanction for unlawful disclosure of taxpayer information.”

So there. Do you feel better now?

Emma Carr, deputy director of civil rights campaign group, Big Brother Watch, doesn’t. She said: “The ongoing claims about anonymous data overlook the serious risks to privacy of individual level data being vulnerable to re-identification.

“Given the huge uproar about similar plans for medical records, you would have hoped HMRC would have learned that trying to sneak plans like this under the radar is not the way to build trust or develop good policy.”

Ross Anderson, a professor of security engineering at Cambridge University, told The Guardian the information could be highly useful to credit rating agencies, advertisers, and retailers wanting to practise price discrimination.

“This is going to be a big battleground,” he said. “If they were to make HMRC information more available, there’s an awful lot of people who would like to get their hands on it. Anonymisation is something about which they lied to us over medical data … If the same thing is about to be done by HMRC, there should be a much greater public debate about this.”

It seems the Conservatives in the Coalition are determined to sell information that doesn’t belong to them, and intend to grind us down with a relentless bombardment of initiatives and plans until they succeed.

They seem to by relying on the possibility that we will get ‘complaint fatigue’ and give up any protests. This is how they have beaten disabled people into submission to the draconian system for withdrawing state benefits from them; the system for appealing is drawn-out and convoluted, and many people with illnesses are too tired or weak to go through the process.

Also, this is another way of contracting-out government work to private firms, as evidenced by the VAT “research” that has been handed over to credit ratings agencies.

You can be sure of two things: Your data is not safe in their hands, and they won’t stop trying to sell it until they have been pushed out of government.

What are you going to do?

UPDATE: Campaigner Patrick Olszowski has responded to my challenge by launching a petition on the Change.org website. Please visit and sign!

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Sort out the tax dodgers, Labour, then the benefit bill won’t be a problem

Off-message: If Rachel Reeves had promised to get as tough on tax avoidance in her previous job as she is promising to be on benefits now, Labour might have had more credibility.

Off-message: If Rachel Reeves had promised to get as tough on tax avoidance in her previous job as she is promising to be on benefits now, Labour might have had more credibility.

A lot of people have been getting their knickers in a knot about Rachel Reeves’ interview in today’s Observer – and rightly so.

In it, she tells us (wrongly), “We are not in an environment where there is more money around,” and says that Labour will be tougher than the Tories when it comes to slashing the benefits bill. She stressed that she wanted to explode the “myth” that Labour is soft on benefit costs.

There are a few myths feeding into these statements. Firstly, the myth that millions upon millions of British citizens are living a life of luxury on benefits, which is, quite frankly, infantile nonsense. Benefits do not pay the ordinary claimant enough to afford huge luxuries and never did. They were always intended to cover the cost of survival while the recipient looked for something better. Anything else is a lie concocted by unscrupulous politicians, that you would be a fool to believe.

Then there’s the myth that the British taxpayer is being defrauded out of a fortune by benefit cheats who are (again) living a life of luxury at our expense. One look at the figures dispels that idea! The fact is that only seven people in every thousand commit benefit fraud – at a consequently small cost to the overall budget – and the amount they receive simply would not support the lifestyle our politicians are suggesting for them.

Let’s move up to a bigger myth – that people prefer to live on benefits than get a job. We’ve now moved from infantile nonsense to dangerous nonsense. The current situation, engineered by the conservatives in both Coalition parties, means there are very few jobs available – around 500,000 at any one time, with 2.5 million people chasing them.

And what kind of jobs are they? How many are zero-hours contracts? How many are part-time? These jobs do not pay more than benefits (“Making Work Pay” – another Tory lie) so anyone taking them will be out-of-pocket.

Meanwhile, the Tories in power have rigged the system so that anyone who does not spend the entire working week pestering local businesses for jobs that they aren’t offering will be sanctioned and will lose their benefit for a period of up to three years! It is entirely disproportionate, considering the state of the economy, and may cost jobseekers a lot more than a few quid a week in the long run.

But this is how the benefits bill will be slashed – by the Conservatives and by Labour, if Rachel Reeves is to be believed. Ministers of any party, living in the la-la land of made-up statistics, will sanction people for failing to work hard enough at securing jobs that don’t exist!

Ms Reeves says Labour’s jobs guarantee will ensure that those jobs do exist but we don’t know that for sure. We do know that she intends to continue Tory policy on sanctions – blindly.

Finally, we have the biggest myth of all – that there isn’t enough money. HM Revenue and Customs just released estimates for the last-but-one tax year (2011-12), suggesting that it failed to collect £35 billion in evaded or avoided tax during that year.

That’s seven times more than the national bill for JSA, and more than 29 times the estimated cost of all benefit fraud. But wait – it gets better! This is only an estimate and it has long been believed that the true cost of the so-called “tax gap” is £120 billion – equal to each year’s national deficit, 24 times the cost of JSA or 100 times the cost of benefit fraud.

Why isn’t our government going after these criminals? Why hasn’t Labour promised to go after them if the Tories won’t?

Simple: Both main parties have been re-writing tax law to make it easier for rich individuals and large corporations to avoid paying tax, and ignoring flaws in tax laws that make avoidance possible.

So for example: In the late 1990s, the then-Labour government removed the tax on dividends that meant companies had to pay tax on profits if they wanted to pay them out to the owners. So for example Arcadia boss Philip Green’s wife Tina, who is technically the owner of the company and lives in Monaco, received a tax-free £1.2 billion dividend in 2005; if this tax had been in place, £300 million of that would have gone to the UK Treasury.

Gordon Brown slashed Capital Gains Tax from 40 per cent to 10 per cent in 2000, meaning income that his friends in private equity managed to engineer into capital gains would be taxed at a lower rate than was paid by their cleaners. Not the finest hour for the Party of the Worker!

And towards the end of its term, New Labour started dismantling the rules that guarded against industrial-scale tax avoidance by British multinationals, meaning profits returned to the UK from overseas subsidiaries would be exempt from tax. This created a substantial incentive for firms to send their income offshore.

Before the 2010 election, our old friend David Gauke made a lot of noise about stopping the limitless tax deductibility of interest payments, that had been used by Boots (the chemist) to slash its tax bill. Six months after the election, when he was in a position to do something about it, he was telling everybody the rules would not be altered because business considered them a competitive advantage.

The Coalition brought in tax exemptions for companies’ tax haven branches and for profits parked in tax haven subsidiary companies. Meanwhile, tax breaks for the cost of funding these offshore set-ups, from the UK, are also provided.

Corporation Tax will drop to 21 per cent by 2014, even though there is no evidence that cutting the rate will make the UK any more competitive in world business.

The Treasury’s mission is now to adjust the framework of tax laws to suit big business. The ‘Big Four’ accountancy firms are now well-entrenched in writing our tax laws for us – and they run the most popular tax avoidance schemes. Consultations have descended into a process of agreeing laws demanded by big businesses.

There are clear and irrefutable arguments that reversing these legislative idiocies and closing every other tax avoidance loophole will do far more for the economy than flogging the unemployed to death, looking for jobs that don’t exist.

But I don’t think former Bank of England economist Rachel Reeves will be interested in that. In 1975, an appalled taxpayer wrote to then-Chancellor Denis Healey, complaining that an employee of the Bank (which is supposed to work on preventing tax avoidance) had been giving advice on how to avoid tax. “I wonder if this is really part of the Bank of England’s duties,” the correspondent wrote.

The behaviour of Ms Reeves, the former Shadow Chief Secretary to the Treasury, suggests that she believes it is.

This Royal Mail privatisation will harm us all

End of an institution: We can all wave goodbye to friendly Postman Pat; the new post-privatisation Royal Mail will be run according to strict for-profit rules and rural areas in particular are likely to suffer.

End of an institution: We can all wave goodbye to friendly Postman Pat; the new post-privatisation Royal Mail will be run according to strict for-profit rules and rural areas in particular are likely to suffer.

Is anybody happy that the Royal Mail is to be privatised?

Personally, I see no cause for celebration. Polls show that 70 per cent of the public are against privatisation – no matter which political party they support – and 96 per cent of the workforce don’t want it either, despite being offered shares in the new company. They’re not stupid. They know that workers in other privatised services have not been able to keep their shares. Will they be able to take the shares with them if they leave?

And what will happen to workforce terms and conditions?

Other people buying shares will have to pay at least £750 to get the smallest stake in the new company – that puts the sell-off well out of the reach of most people in these depressed times. It is a privatisation for financiers, lawyers and accountants. They won’t want to share the profit pot with staff – and profits are at a record high of £400 million per year.

Meanwhile, the Conservative and Liberal Democrat coalition government recently nationalised the Royal Mail’s pension fund obligations (its debt) so that taxpayers across the country will have to pay for it. The privatisation means any profits will go to those who can afford to buy the shares. This is bad business. Don’t these two political parties always claim they are the experts when it comes to money? It seems a strange claim to make in the light of such reckless endangerment of public funds.

What of the future? We have seen where privatisation leads, with the flotation of the railways, the energy and water companies on the stock exchange – shares have ended up in the hands of foreign multinationals who have pushed prices up and up, while providing ever-poorer services, and the companies concerned have continued to demand money from the government for any investment; this is because all the profits go to shareholders, who then feel justified in granting huge pay packets to their chief officers.

So the taxpayer continues shelling out for these so-called private utilities while the new owners have the time of their lives at our expense. The workers – and the service – suffer.

This is a change that will affect everyone. I hope everyone remembers who inflicted it on us, when they come to vote at the general election in 2015.