Tag Archives: tax

Will Sunak tax you cash you don’t owe, to pay a Covid-19 bill that doesn’t exist?

Rishi Sunak: now his nervous look may be attributed to the possibility that he will lie to us next week, demanding we pay back £300 billion that the Tories used to cover the cost of the Coronavirus when there is absolutely no need to do anything of the kind. The government created the money that was used to pay for the crisis.

Pay special attention to Rishi Sunak’s spring Budget speech next week because he will probably try to steal money from you.

It is likely Sunak will introduce measures that he claims are needed in order to pay back the £300 billion (roughly) cost of everything the Tory government has done to keep the UK running during the Covid-19 crisis.

He will be lying if he does. No such measures are needed.

You see, the money used to pay for Covid-19 was created by the government. It wasn’t borrowed and there is therefore no need to pay it back.

Watch Richard Murphy’s explanation here and you should get the idea:

What strikes This Writer as particularly evil is the implication that Sunak may impose taxes on us, in order to perpetuate a myth that the Tories have spun since 2009: that austerity is necessary.

It isn’t. It never was.

And this means that all the deaths that have been driven by Tory austerity policies were unnecessary; they were deliberately planned by Conservatives from David Cameron’s era onwards and this means that Cameron and those Tories who conspired with him (Iain Duncan Smith springs particularly to mind) should be brought to account for it.

But I doubt they will.

Public opinion is largely led by the mass media, who are currently owned by the Conservatives. They’re hardly likely to do anything that endangers them.

And that means you are unlikely to hear on the BBC any suggestion that we don’t owe anything for Covid-19.

But you don’t. And now you know this, you need to tell everybody around you.

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Windfall tax on pandemic profits should wipe out Covid-19 related debt says McDonnell

John McDonnell: he would have revolutionised the UK’s economy. Instead, the Tories have saddled one-tenth of the population with debt so great that they cannot pay their regular bills.

A former Shadow Chancellor has proposed a radical set of plans to clear the debt created by the Tory government’s cack-handed handling of the Covid-19 crisis.

John McDonnell pointed out that the richest firms in the UK have profited hand-over-fist during the crisis, and should pay a windfall tax to help pay for the measures to end it – which would ultimately help them, of course.

His proposals were not an attack on businesses, though – they were a criticism of a speech by current Labour leader Keir Starmer, whose best idea was to get members of the public to give all the money they have managed to save during the crisis to a new investment bank – meaning the nation’s poorest would foot the bill (again). What a socialist Starmer is!

In fact, according to Citizens Advice, more than six million people have fallen behind on their bills because of Covid-related hardship, and the number in severe, problem debt has doubled to 1.2 million.

They don’t have any spare cash for castle-in-the-air investment banks!

McDonnell said a comprehensive package of debt cancellation was needed to get the UK back on its feet, including high-cost debt, old debt, unmanageable rent and student debt – all to be supported by a windfall tax on businesses that have raked in billions of pounds over the last year.

He called for the creation of a ‘Debt Charter’ to tackle the causes and consequences of debt in UK society.

Improved benefits and a £10-an-hour living wage, along with restored universal basic services, should be deployed to prevent people from getting into debt in the first place, he said.

He called for a cap on interest rate charges and a ceiling on overdraft fees and interest payments to “rebalance power between lenders and the indebted”.

And he said bailiff visits should be suspended at least until the whole of the UK has been vaccinated against Covid-19.

This is the kind of thinking we need at this time.

We could have had it, too – if only millions of people had not been hoodwinked by anti-Labour propaganda at the 2019 general election, including a Tory campaign that was found to be more than 80 per cent lies.

So if you find yourself struggling with debt for years to come, while the Tories, their client media and their business-oriented doners tell you you’ve never had it so good, just remember that you could have had it better.

And remind everybody you know not to be fooled again.

Source: Impose windfall tax on pandemic profits to wipe debt slate clean, says McDonnell | The Independent

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Are the Tories trying to stop poor people having a say in public services because they stopped the low-paid from paying tax?

Some of us saw this coming.

If you’ve seen the video clip in which Richard Murphy explains how money works, you’ll know that people who pay tax are more likely to vote – they feel they have more of an interest in it.

(Of course, tax is about returning money the government has created, in order to avoid catastrophic inflation – and not about giving the government the money it needs in order to provide public services, but let’s not complicate matters by going into that.)

But the Tories have spent the last 11 years raising the earnings threshold at which people pay tax, claiming this as a sign of their generosity.

Oh really? Watch the video and consider the comment by Paul Sweeney.

It seems to This Writer that, through no fault of their own, attempts are being made to deny more than 20 million people the right to say which services the government funds. Presumably the next step is to say, if you don’t pay tax, you don’t get to vote.

We’re on a very slippery slope, here.

And a hypocritical one.

You’ll notice that nobody is saying you shouldn’t have a say if you don’t pay all the tax for which you should be liable – for example, because you engage in tax avoidance.

So super-rich tax avoiders will be able to vote/help decide which public services are funded or whether they get funded at all – despite the fact that most of them don’t need the most expensive of those services. Logically, they’ll say those are the ones to get the axe.

Meanwhile, the super-poor – who are now prevented from paying tax, either because they are on benefits or their wages have been pushed into the dirt by Tory employers – may be denied that right.

It should not even be a subject for discussion.

The qualification for voting – and therefore for helping decide how public money is spent – is UK citizenship because we all live here and we are all affected by the decisions the government makes.

Oh, and of course Income Tax is not the only tax that people pay.

So to rule people out of the process because they have been priced out of paying just one of the UK’s many taxes would be unfair in the extreme – and Emma Barnett was talking out of her rear end.

What a shame that’s such a good description of our current Tory government.

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If Boris Johnson wants to give cash to firms run by his cronies, why should we foot the bill?

Cronies: Dominic Cummings with Boris Johnson, whose government gave hundreds of thousands of pounds to a firm run by a former associate of the former and a woman who co-wrote the latter’s 2019 Conservative election manifesto.

Squirm as it may, Boris Johnson’s government cannot deny giving a hell of a lot of public money to Conservative Party cronies, bypassing the usual tendering system by claiming it is under emergency procedures.

So it cannot suggest it is unreasonable for the courts to investigate whether the process was used properly and the money given to professionals who could carry out the necessary work correctly.

In the case mentioned by the Mirror, it may prove hard to support a claim that the cash was handed over in a proper way.

It went to a firm run by a now-former associate of Dominic Cummings and a woman who co-wrote the Conservatives’ 2019 election manifesto.

And it is said that more than a quarter of a million pounds of public money was handed over to Public First on the basis of nothing more than a handshake.

According to Cabinet Office records, there seems to be some confusion about what the work entailed, as some of it is stated to be related to Brexit rather than Covid-19.

Public First was also involved in the fiasco in which an algorithm was devised to dictate the grades that ‘A’ level students would receive rather than taking the exams, after being granted a contract that, once again, was not put out to competitive tender.

The algorithm artificially boosted the results of pupils who attended private schools, while state school pupils’ grades plummeted – even in the most promising of cases.

Ofqual boss Sally Collier later resigned – apparently over the decision to provide the contract to Public First.

Prima facie evidence would suggest that there are questions to be asked about the firm’s competence.

And that leads This Writer to the following urgent question:

Given what we know about the nature of money – that it is created by the government and paid into the economy for particular purposes before being taxed out of it again, why should the public as a whole pay back in taxes the cost of an example of Tory Party cronyism that appears to have caused more harm than good?

Source: High Court ‘set to hear from Dominic Cummings’ over controversial Covid contract – Mirror Online

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The richest UK citizen doesn’t own any money; it all belongs to the government. Why do some people cheat with it?

This is not a bombshell – it’s (very) simple economics.

As Richard Murphy explains in his video (below), money has no value in and of itself. It used to – when the United States applied the Gold Standard (meaning the Dollar was worth its value in gold) – but when the States had trouble funding the Vietnam War, Richard Nixon put a stop to that.

The Pound was also tied to the Gold Standard, because it had a fixed exchange rate with the Dollar, but that all changed in 1971. The value of our currencies became fluid, attached only to the promise by the Governor of the Bank of England – a government employee – to pay the bearer, on demand, the sum printed on the front of our banknotes and coins.

That promise, in turn, is only worth anything at all because the government refuses to take our taxes in any form other than the Pound. That’s why we do all our trade in the UK using the pound; because if we didn’t, we would have to put our cash through an exchange system – possibly with an adverse exchange rate – before paying our taxes.

And tax is important because it stops our money losing its value. Governments create money (as Mr Murphy explains in the clip). They must also destroy it – otherwise the system fills with too much of it, meaning we have to pay more for the goods it buys, and we get inflation.

It occurs to me that this means certain people are screwing up the system for the rest of us.

I’ll tell you who they are after you see the clip. Skip straight on if you’ve watched it already.

What about people who hoard up their money in tax havens and refuse to pay it back?

I’m referring, of course, to the super-rich.

They seem to think that the cash they have accrued is theirs; it isn’t. It belongs to the government, no matter whose bank account holds it.

And it was created for a purpose. And the government sets tax rates in order to recover it after that purpose is achieved.

So it follows that anybody avoiding tax is deliberately sabotaging the government’s plans.

What can a government do about it?

Well, as we’ve seen with the Tories, the most common choice is to do nothing and let the greedy fatcats keep their ill-gotten gains.

This, in turn, must have an inflationary effect as not as much cash comes back to the government as intended.

And how would a government deal with that?

It would tax the rest of us – those who have no choice but to pay – more.

So it seems to This Writer that you pay taxes for the super-rich who avoid paying theirs.

Do you think that’s fair?

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Employers need to plan for the future. Why is the ‘party of business’ denying them this security?

Ditherer: Rishi Sunak doesn’t know how to safeguard businesses and the UK economy, or link its well-being with public health because the neoliberal dogma he learned does not accommodate phenomena like the Covid-19 pandemic.

Covid-19-related support packages for businesses are set to end soon, with no extension or replacement announced – signifying a £50 billion loss to the UK’s economy.

According to Tory plans the furlough scheme, rates holidays, tax deferrals, VAT cuts and other support packages will be closed at the end of the financial year.

But businesses are now expecting to be closed well into the spring and possibly beyond.

Tory Chancellor Rishi Sunak is not likely to announce his plans for the future of the economy until he makes his spring Budget statement on March 3 – too late for many firms, whose bosses will have to make decisions based on information currently available to them before that, if they are to be seen to be acting with responsibility to their shareholders, creditors and even employees.

Labour has demanded immediate action and, for once, Keir Starmer’s party is right.

Shadow business minister Lucy Powell also touched a raw nerve when she said Boris Johnson’s Tory government had failed to ensure that business support was integrated with public health measures.

As a result, the UK’s Covid-related recession had been the worst of any major economy.

And the longer Sunak dithers, the worst the situation will become.

Source: Businesses facing £50bn ‘bombshell’ as Covid support withdrawn, warns Labour | The Independent

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No taxation without representation! But do we get value for money from our taxes?

Richard Murphy’s YouTube channel really is a goldmine if you want to explain to people how money works and why it is important.

In the video below, he discusses tax – why it is a good thing (yes, really!), how it balances faults in our economic system, and how it gives us a voice in government.

Did you know, for example, that without tax our money would be worthless?  Its value is validated by the fact that the government will only accept payment in pounds sterling, and that’s the only reason the pound has any value at all. Money is an artificial construct, you see. Its only worth is given to it by the importance we allow it.

Did you know that the government (it doesn’t matter which party is in office because they all do the same thing) must tax us in order to maintain the value of our money? If it didn’t take out of the system at least some of what it pays in, we would face rampant inflation. This means that governments create money, of course.

Did you know that, when they pay money into the system, governments support particular projects – either by directly funding them or by providing tax “breaks” to allow businesses or organisations extra cash they need to be financially viable?

And did you know that people who pay tax are more likely to vote – because it means they have a say in what is done with their money?

All these things are explored – albeit briefly – in the video below. It’s a great little primer on why the money in your pocket or bank account is important. And it’s less than four minutes long:

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So much for ‘free trade’ between the UK and EU! Have you seen how much tax the TORIES are charging us?

Money, money, money: the UK government is coining it in VAT and other taxes since Brexit finally happened on January 1. And YOU are paying.

Tales of shoppers having to pay huge extra costs to have goods delivered from the EU post-Brexit are proliferating.

But that doesn’t mean we don’t have free trade!

It means our own – Tory – government is charging us extra in taxes.

It seems possible that this was the intention all along.

So in the BBC story (link below), one shopper was lumbered with a £12 extra cost for a £50 item.

UK VAT accounts for £10 of the extra £12 that Sascha was asked to pay. Sellers may also be charging higher delivery fees to cover any extra paperwork or border delays they may face.

On items costing less than £135, the charge is applied at the point of sale.

Another buyer was asked to pay £123 on top of £600 (and £25 delivery) for two designer handbags from Paris – when they arrived. This was still UK VAT, the BBC reckons, but because the items cost more than £135, the charge was applied when the items reached their destination.

A woman who received earrings as a gift, posted by a friend, was charged £28.85 by parcel handler DHL, even though they were sent before Christmas. Deliveries ran late so they arrived after January 1 – and came with the added taxes.

Gifts worth less than £39 don’t attract any extra charges… But gifts over that, like gold earrings, are eligible for VAT and (if it’s over £135) customs duties. And it’s always the recipient who receives the bill.

Import VAT applies for second-hand items as well as gifts, even if bought from a private individual.

EBay already has its system set up to charge the extra VAT upfront. Amazon says VAT will always be charged at point of sale on its site too. But the system won’t be running smoothly yet everywhere

Oh – and it works in reverse, too. A person in France, buying a £150 pair of boots from the UK, was asked to pay 88 Euros in import duty, breaking down to 43 Euros VAT, 30 Euros customs tax and a 15 Euro handling fee.

She was able to reject the delivery – but many others may not have the option as firms are

changing their terms and conditions so that customers have to cover the extra charges, even when goods are returned.

The BBC explained:

Shoppers on the continent buying from UK firms face the same rules as UK shoppers do in reverse so Jemima would have had to pay VAT and customs charges, because the boots or the materials they were made from, originated from outside the EU.

The revelations received this response on the social media:

Goods shortages, much higher prices, but at least we’ve got blue passports eh? How many still think #Brexit was a good idea? Voluntarily kicking ourselves when we’re already down,” tweeted Sheridan Webb.

Pete Franklin added: “That normal, apparently successful, people are being surprised by this gives us a clue why we are in this mess – they simply haven’t been paying attention. ”

Perhaps Steve Feasey put it best: “When Project Fear turns out to be Project Hasn’t-Everything-Got-Dear.”

And some have added this to the list of disasters caused by Brexit since the EU referendum in 2016:

Source: Brexit parcel price shock: ‘I had to pay £30 for a gift’ – BBC News

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A week after Brexit, how are the UK and the EU getting on? Not very well, it seems

I was going to leave the headline as a rhetorical question but too many people would have tried to answer without reading the article.

And who can blame them? It all seems a nasty mess at the moment. But are these really only teething problems?

Here comes the list:

The UK and the EU are heading towards a confrontation over financial services after trading in £6 billion worth of euro-dominated shares started moving to European continental stock exchanges in Amsterdam and Paris.

UK financial service providers and banks have lost the so-called passport that gave them the right to operate without restrictions throughout the EU, and now depend on unilateral decisions from European authorities to extend them an “equivalence” based on regulatory convergence, sector by sector.

Bank of England boss Andrew Bailey has said the UK should not become a so-called “rule taker” by mimicking EU regulations just for the sake of obtaining an access to European markets.

To This Writer’s uncultured eye, he seems to be saying we should lose a lot of business. Or is he he suggesting that trade will come back to the UK if businesses see an advantage in trading outside EU regulations?

This is not likely to sort itself out for several years.

Marks & Spencer has discovered holes in the so-called “zero tariff” trade deal with the EU that means its Percy Pig sweets – manufactured in Germany, transported to the UK, and then re-exported to other countries like Ireland – would face taxation and bureaucratic “red tape” costs.

The firm has already dropped hundreds of products, including chocolate fudge pudding and sweet and sour chicken, from its Northern Ireland stores after it saw competitors’ lorries barred from travelling between the mainland and Northern Ireland.

John Lewis has scrapped deliveries of its products to EU countries (although the firm says this is because of a business decision to concentrate on the UK). Debenhams and Fortnum & Masons have also suspended deliveries to Ireland and the EU respectively, blaming uncertainty over post-Brexit trading rules.

Scottish seafood firms are already facing financial difficulty as new post-Brexit rules demand that every single box has to be offloaded from lorries, opened and checked by vets before leaving Scotland – creating five-hour delays per lorry.

And overseas customers are cancelling orders – putting the £1 billion-per-year business in jeopardy.

Expect much more of the same in the future.

Have YOU donated to my crowdfunding appeal, raising funds to fight false libel claims by TV celebrities who should know better? These court cases cost a lot of money so every penny will help ensure that wealth doesn’t beat justice.

https://www.crowdjustice.com/case/mike-sivier-libel-fight/


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Will you be able to pay next year’s FIVE PER CENT council tax rise?

 

Isn’t it wonderful that dodgy Tory Robert Jenrick has announced a huge boost in councils’ spending power next year?

And isn’t it diabolical that, after finding billions upon billions of pounds for fake firms run by Tory cronies, these funds will be provided via a massive five per cent hike in council tax?

Councils will be given the freedom to hike bills by 5% next year despite wages and growth stalling in the pandemic.

The small print of a police grants report, published today, also reveals next year’s police funding is dependent on council tax hikes of £15 for a Band D home.

Those hikes would be over and above the other rises in council tax to pay for general services and social care.

And what will you get for it?

Street lighting, rubbish collection (except you still won’t be able to recycle everything that you should), and inflated salaries for councillors and council officers who don’t deserve them.

Source: 11 bits of bad news the Tories sneaked out hours before the Christmas holiday

Have YOU donated to my crowdfunding appeal, raising funds to fight false libel claims by TV celebrities who should know better? These court cases cost a lot of money so every penny will help ensure that wealth doesn’t beat justice.

https://www.crowdjustice.com/case/mike-sivier-libel-fight/


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The Livingstone Presumption is now available
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