Tag Archives: tax

Sunak threatens tax raid in yet another Tory u-turn

Rishi Sunak: I like this shot because he looks nervous. If I was in his position, asking Tory backbenchers to raise taxes, I’d be nervous too.

This won’t play well with the Tory backbenchers: after u-turn after u-turn over Covid-19 and schools, their government is promising yet another u-turn – over tax.

Tories pride themselves on being a tax-cutting party. But Rishi Sunak is said to be threatening not just one but several tax hikes:

And to add insult to injury, the planned policy change means the Conservatives will be mirroring a policy planned by Jeremy Corbyn’s Labour in its 2019 election manifesto:

And if the voters don’t like it – and they don’t:

… What are Johnson’s already-disgruntled backbenchers going to do?

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Supine Sunak set to axe ‘Facebook tax’ because he’s scared of big, nasty Donald Trump

Rishi Sunak: ‘Please don’t force us to eat your diseased chicken, Mr Trump! Look – we’ll cancel our tax on your tech companies! They can take as much money as they like from operating in our country and we won’t ask for a penny! Will that persuade you, Mr Trump? Mr Trump? Are you there..?’

Could there be a more blatant display of the UK’s newfound powerLESSness in the world?

The UK imposed a tax on tech companies like Facebook last year, expecting to bring in £500 million per year from firms that make more than £25 million each and would otherwise pay very little indeed.

But now Rishi Sunak is reportedly planning to axe it, in the hope that doing so will encourage Donald Trump not to insist on sending chlorinated chicken to the UK.

Sunak doesn’t even have the bargaining power to say he’ll do it on condition that Trump relents on his determination to foist food poisoning on the United Kingdom.

The justification to the rest of us? “Oh, it’s more trouble than it’s worth.”

I don’t know about that. £500 million is a lot of money to most of us.

The whole situation is pathetic.

The Johnson government, in the footsteps of Theresa May and David Cameron, has reduced Britain from Greatness to a state that can only be described as Little.

Source: Rishi Sunak to axe ‘Facebook tax’ on US tech giants deciding it is ‘more trouble than it’s worth’ | Daily Mail Online

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Tories are stalling on social care because they don’t want you to have it

Matt Hancock: millions of people are going without vital care because this bubblehead can’t be bothered to read a report.

Is it really any surprise that the Tory response to Covid-19 in social care situations has been a massacre?

They have no interest in using public funds to provide care for people who need it; they don’t think the money is meant for that.

Also, of course, anything with the word “social” in its title is like garlic to a vampire for them.

For example, has Health and Social Care Secretary Matt Hancock got round to reading a report that stated – in July 2019 – that the social care system needed a cash injection of £8 billion, just to keep it ticking along?

Who knows how much cash it needs now?

Hancock was supposed to respond within two months but didn’t. Perhaps he was on his summer holibobs.

It is now more than a year later. Yes, Hancock has had to handle the Covid-19 pandemic – but if he was a responsible minister, he would not leave other matters dangling, and in any case the crisis has identified serious failings in care home provision.

Hancock has done nothing about them, nor has he lifted a finger to address failings that have left no fewer than 1.4 million older people in the community without help that they need desperately.

Public funding has fallen by £700 million since the Conservatives came back into office in 2010, and 400,000 people have lost their entitlement to help because successive Tory minister couldn’t be bothered to increase the level of means below which a person should be eligible for help, in line with inflation.

Boris Johnson ignored the scandal in his manifesto for last year’s election because he was afraid it would derail is campaign – and your true-blue Tory mass media dutifully turned a blind eye.

Theresa May’s 2017 election campaign was derailed by the issue of social care, after she proposed draconian measures to take families’ property away from them, in order to fund care for frail relatives.

Finally, last week, pressed for an answer on social care by a coalition of English councils, Hancock volunteered a cobbled-together choice between forcing everybody aged over 40 to contribute extra taxes to fund social care in later life – in line with models running in Japan and Germany, and compelling us all to take out insurance that will pay the bills later.

Neither plan is workable.

Firstly, what if people who are taxed for social care in later life never actually need it? This Writer’s grandmother lived to the ripe age of 88, with Altzheimer’s in her later years, but never had social care; my parents are both in their 80s now and are happily – and healthily – at home. Contribution to such a fund for any of them would have been a waste of money.

And the insurance plan is a no-hoper too: payment into private insurance schemes inevitably creates the temptation to cheat the payee out of their funds. Look at the way the criminal US insurance firm Unum cheated its clients out of their payments by ensuring that they could never meet the conditions required for payouts. Look at the number of UK pension funds that have been raided.

And of course we already pay into an insurance fund for our old age: National Insurance. The Tories could simply increase that by 1.5 per cent (that’s the amount of their income that Germans pay), rather than farming the job out to let privateers rob us all.

Either Hancock hasn’t considered any of these issues or he doesn’t care.

Source: Matt Hancock has failed to respond to report warning of social care ‘scandal’ nine months after deadline | The Independent

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Sunak’s online sales tax really is just another way to attack people with disabilities

Rishi Sunak: he keeps interfering with the market, despite his party’s claim that it’s better to leave it alone. Is it because Tories love to torture people with disabilities?

Rishi Sunak isn’t making any sense at all.

He says his plan for an online sales tax is intended to push people back onto the High Street, to physically go out and buy products in order to save businesses that are in danger after the lockdown forced us to stay indoors.

We’ve been buying products online while Covid-19 remains a threat.

And we’ll go back to the High Street, but only once we are convinced the danger is over.

So if High Street shops are in danger, it’ll be because we can’t trust Sunak and his fellow Tories on when that’s likely to be.

Not only that, but in considering such a tax, Sunak is saying the UK is hostile to the new commerce that the Internet represents – as net-based firms still pay business rates and all the other taxes associated with sales.

That’s not good for any country’s economy in this day and age.

It simply doesn’t make sense.

But, considering the Conservatives’ well-known passion for cruelty, there is one reason for bringing in an online sales tax that does make sense: they’ve found out it’s another way they can attack people with disabilities.

People whose health conditions mean they can’t get out of the house have to use the Net to get their stuff, and many shops don’t have access for people with disabilities anyway – despite disability access laws having been enacted many years ago.

People with disabilities don’t have much cash to enjoy, either. They’re either on benefits or in low-waged employment.

So the logical reason for imposing an online sales tax is to push disabled people further into poverty – or to deprive them of goods that they should have the same opportunity to enjoy as the rest of us.

Tories have form in this regard; “Eat out to help out” was another attack on people with disabilities, as you can’t benefit from a discount on restaurant meals if you can’t actually leave home.

Underlying it all is yet another big lie:

Tories have supported, on the face of it, neoliberal ideology since Margaret Thatcher became their leader in the mid-1970s – and that means they support a laissez-faire attitude to the market.

This means they believe the market will automatically adjust to prevailing conditions in order to keep going.

So the proper government policy is non-interference.

Yet here they are, interfering.

Source: Rishi Sunak’s planned online sales tax is a tax on disability | Disability | The Guardian

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DWP rejection of benefit increase call proves conclusively: we’re NOT ‘all in it together’

The Department for Work and Pensions has rejected a call by its own advisors to increase benefits and help two million people get through the Covid-19 crisis.

The Tory government promised to increase the amounts of Universal Credit and Working Tax Credits payable to claimants, way back in March.

But people on the so-called “legacy” benefits like Employment and Support Allowance have been denied the same courtesy.

Ministers said this is because it would take too much time to implement.

What – a few keystrokes on a computer takes too much time to implement? I don’t believe it.

How do they manage the regular annual upgrades, then?

This Writer reckons the intention all along was to give a false impression to normally-working people who were thrown onto UC by the Covid crisis, that the benefits system provides an ample safety cushion to claimants in need. It doesn’t.

People on the “legacy” benefits already know the system is set up to punish people for being out of work, and therefore are deemed not to need an increase that is only for show, while the Covid contingent is claiming.

In other words: the Covid-related benefits boost is just another public-relations scam.

Getting people through the crisis is only its secondary function.

Its main purpose is to reassure Conservatives in the electorate.

If it dupes enough Tory voters into continuing to vote Tory, it will have done its job.

Source: DWP rejects own advisers’ call to up benefits to help two million through coronavirus pandemic

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Employees are to be taxed for every Covid-19 test they take, HMRC confirms

HMRC: if you have a Covid-19 test, the government will tax you for it.

Just when you think the Tories are as low as they can go, they find a new way to disappoint.

HMRC has confirmed that Coronavirus tests are to be treated as a “benefit in kind” and that every employee who takes one as part of their job will be taxed for it:

Some of us should be tested regularly because our jobs involve regular contact with large numbers of people.

Consider the doctors and nurses who have saved so many lives already, for example.

Do you think they should be penalised, simply because the nature of their work – saving lives – requires them to take these tests?

It won’t be a step too far because British people are notorious wimps when such impositions are made on their working pay and conditions.

But if you are affected, you should be downing tools and demanding that this decision be refused, and if you aren’t, you should be downing tools in solidarity. This is an attack on all of us.

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Scotland joins Wales to ban Covid-19 support to firms based in tax havens

Registered in a tax haven? Then no tax-funded help for you: there’s no reason the UK should give tax-dodging firms a hand during the coronavirus crisis if they haven’t paid their full dues. Wales and Scotland have made this clear; let’s see Westminster do the same.

Quite right too. If you’ve opted out of paying tax when the going was easy, then you can’t try to get help from the taxpayer in hard times.

Has the Tory government in Westminster made this decision yet?

The Scottish parliament has voted to block companies based in tax havens from using millions of pounds in coronavirus relief funding, in emergency legislation.

MSPs approved measures on Wednesday night brokered by the Scottish Greens to prohibit firms or individuals who are registered in tax havens, or are a subsidiary of an offshore company, from getting support grants.

The vote follows similar decisions by the Welsh government last week and by other EU member states, including Denmark and France, but ministers have yet to say how much Scottish government spending will be affected or how it will be enforced.

It is thought it could prevent companies with offshore links from applying to a new £120m enterprise resilience fund that provides grants for small- and medium-sized firms, and a £30m creative, tourism and hospitality bailout fund for firms that cannot get business rates relief.

The Welsh government blocked companies with headquarters in a tax haven from accessing its £500m economic resilience fund on 15 May. Ministers in Cardiff said last week it would affect a small number of companies.

Source: Scotland bans Covid-19 support to firms based in tax havens | Politics | The Guardian

As corporations send billions to tax havens, who do you think will pay for Covid-19?

Rishi Sunak: it seems he expects the poor to pay for coronavirus while the rich send billions of pounds to tax havens.

The Conservative government has allowed the super-rich to squirrel billions of pounds away in tax havens, while whining that the UK will have to tighten its national belt if it is to pay for the coronavirus crisis.

Legislation from 2016 that was intended to stop £2.5 billion in taxation from being lost to tax havens is being deliberately ignored by the Tories, according to the Tax Justice Network.

This is cash that could be used to help pay for the cost of coping with Covid-19, but instead it seems the Tories want working people and the very poor to pay for it.

Who is better-equipped? The idle rich who won’t do anything with the money apart from keep it away from the national purse? Or the vulnerable poor who will be trodden into the dirt by the deprivation of even more of their vital income?

According to the Tax Justice Network:

The UK missed out on collecting £2.5 billion a year in corporate tax from multinational corporations due to the UK government failing to exercise a 2016 tax transparency law designed to prevent billions in corporate tax abuse.

Asked whether Chancellor Rishi Sunak plans to exercise powers under the Finance Act 2016 to make multinationals’ country by country reporting data public, the UK Treasury confirmed to Parliament this week that is has reversed its 2016 commitment to publishing the data at a national level, and is blocking the OECD from publishing the data at an international level.

Had the UK government exercised the powers afforded to it by the Finance Act 2016 to publish corporations’ country by country reporting data, the UK could have prevented at least £10 billion in corporate tax from being lost to tax havens since 2016, which could for example have offset the £6.6 billion the NHS is expected to receive in Covid-19 funding, and provided for additional investment in crucial equipment.

Source: UK u-turns on commitment to tax transparency, giving up £10 billion in corporate tax

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Who will profit from post-Brexit freeports?

A port: How will making them tariff-free bring any money into the UK Treasury?

Let’s see if I’ve got this straight:

The Conservative government wants to create 10 post-Brexit ‘freeports’.

In these ‘freeports’, there will be no import/export tariff in goods if they don’t actually move off-port and into the UK.

If they are re-exported, no duty is payable. And where raw materials are imported and processed to become a consumer product, duty would only be paid on that product – if it came off-port and into the UK.

The government is happy to invest in infrastructure, construction and machinery in freeports to make it possible for raw materials to be processed into products – and exported offshore.

And it would work to cut costs of processing goods.

No doubt the businesses involved in taking raw materials, processing them and re-exporting them would have their head office based in a tax haven.

So, who benefits? The UK economy won’t!

Source: Government set to announce new post-Brexit freeports – CityAM : CityAM

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Virgin Healthcare has won £2 billion in NHS contracts – and paid no tax. WHY?

Is this about creative accounting?

How can a commercial firm take billions of pounds of taxpayers’ money to provide healthcare, with a promise to do it within budget and at profit for itself, then record losses every year since its creation (for tax purposes), but still remain in business?

It doesn’t make sense to me.

I think people are being shortchanged.

And I think if I were to attend a hospital where Virgin Healthcare runs services, I’d work out who was being shortchanged in short order.

Sir Richard Branson’s Virgin healthcare group has not paid a penny in corporation tax while being handed £2billion worth of NHS and local authority deals.

Health campaigner Dr John Lister branded the billionaire’s firm “parasitic” over its ­involvement in UK health.

Virgin did not pay any corporation tax on its healthcare arm because it has ­consistently racked up losses since being created in 2010.

Source: Richard Branson’s Virgin Healthcare has paid no tax on £2billion NHS deals – Mirror Online

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