Tag Archives: tax

Here’s why taxes are high – and politicians are wrong to say we don’t need more

HMRC: if our tax inspectors concentrate on rich people instead of the poor, we’ll ALL be better-off.

This is brilliant stuff from Gary Stevenson that debunks the dogma from politicians – in both the Conservative and Labour parties – that taxes need to be slashed:

Is that clear?

In brief: neoliberal governments since 1979 have sold off all the property they own, meaning that – in order to provide services – they have to rent property from the rich people to whom they sold it all.

This is, of course, a ridiculous proposition because renting property from rich people is much more expensive than owning it oneself. We can see this from the sale of council housing; now councils don’t have any low-cost, low-rent houses, more and more people are becoming homeless because they can’t pay the sky-high rents demanded by private landlords, or the sky-high mortgages demanded by lenders.

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So ordinary working people are now having to pay enormous taxes in order to allow our governments to pay for these services at exorbitant prices, because they’ve given all the means of providing these services to the rich.

And when we hear talk of more taxes, we logically conclude that it refers to us paying them – after all, wealth means dodging taxes; the rich pay very little in comparison to the rest of us.

Gary is saying we need to make sure those very wealthy people have to pay more taxes – at a level that will force them to sell the assets they have bought from the government and hoarded away from the rest of us.

That’s a pretty tall order!

But persuading them – nudging them, if you like (remember the nudge unit, long-term readers?) – to sell is the only way to get taxes down for all of us.

If our governments own their own assets again, then they will be able to provide the services we need at a much lower cost and our taxes can fall again, for a realistic, justifiable reason.

That way, we will all enjoy more prosperity.

That is why the likes of Jeremy Hunt and Rachel Reeves are absolutely wrong to say they want to cut taxes. They mean they want to cut taxes for poor people, and the only way to do that is to cut public services.

And you’ll still be paying more, because the government will be using privately-owned assets to provide its services.

The problem is, they don’t want to increase taxes for rich people, partly because they are rich people, and partly because rich people give them donations to keep them from forcing those rich people to give money to the Treasury.

That’s why they lie to us that higher taxes are a bad idea.


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Jeremy Hunt’s Budget fails to cut the tax burden after all

Jeremy Hunt: from the look on his face, this might have been Mr Bean’s Budget. Mr Bean-counter?

At long last, the Tories have unveiled the final Budget of their 2010-2024 government – and what a sad example of political opportunism it was!

Chancellor (for the moment) Jeremy Hunt was widely expected to use it to sabotage a future Labour government by imposing tax cuts for no good reason and then challenging Shadow Chancellor Rachel Reeves to explain which taxes she would restore to pay for Labour’s planned economic programme.

And what vital public services does Hunt propose to end? It was unlikely we would ever be told because nobody cares; he won’t have to think about it if there’s an election soon.

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Fair play to Labour neoliberal Angela Eagle for using Prime Minister’s Questions to ask which Tory achievement prime minister Rishi Sunak views with the most pride – the highest taxes since World War II, or the longest period of wage depression since the Napoleonic War.

Sunak responded by citing his damp squib furlough scheme that he contends kept jobs safe during the Covid crisis. He didn’t respond on the issues Eagle mentioned because he didn’t have to; they will be for someone else to tackle.

Hunt was wheeled on at 12.30 and promised permanent tax cuts – so our expectations were proved correct.

He started by referring to people on Universal Credit who have to take out loans – falling into debt by so doing – while waiting for their claims to be approved. He’s increasing the repayment period to four months. Big deal! They shouldn’t have to take out a loan in the first place and only have to do so because the Tories impose a five-week delay on payments.

He’s extending an alcohol duty freeze – it was due to rise by three per cent this year. But will prices stay the same or will manufacturers and pubs simply raise their prices and take higher profits.

He’s extending the fuel duty freeze as expected, maintaining the 5p cut. He reckons it will save the average driver £50 next year – but will it? Fossil fuel giants and supermarkets are also expected to raise prices anyway and take the cash as profit.

The Household Support Fund to support people on low incomes is being extended for six months. One must take it that this is in the absence of any plan to improve household incomes on a permanent basis.

He referred to the National Debt, saying it will fall to “just” 92.9 per cent of GDP in 2028-9. It’s meaningless; the debt was 250 per cent of GDP at the end of World War II and Clement Attlee’s – socialist – Labour government of 1945-51 ushered in a period of expansion that had not been seen before or since.

He said the economy is set to grow faster than similar countries; nobody cares. Where is the money going? It isn’t going to the people who will use the money but to the Tories’ rich friends – who hide it in banks.

Hunt claims his government is providing more investment, more jobs and better public services.

On investment, he says businesses are investing £30 billion more than during the last Labour government. Gosh. What’s that after inflation?

He cutting investment taxes for businesses by more than £10 billion – money that will go to shareholders and CEOs and won’t do the rest of us any good at all.

He’s providing £200 million to extend the Recovery Growth scheme for small businesses. And he said he’d increase the VAT registration threshold to £90,000, taking thousands of businesses out of paying VAT – another loss to the Treasury, although possible a benefit to the economy, depending on how those small businesses spend the extra cash.

He announced new devolved powers to local areas to support projects there, despite claims of corruption in at least one project that is already running.

He says the government is on track to deliver the building of a million new houses during the current government. Strange – the news has been full of stories about developers delaying building work.

He’s giving £100 million of Levelling-Up funding to support “cultural projects” in communities. What will be the knock-on effect for the economy?

He says the UK has a huge innovative technology economy. If that’s true, why have wages stagnated over the last 14 years? Why has the economy as a whole stagnated too? If these industries are doing so well, why has the government not intervened to ensure the benefits are spread as widely as possible?

He says the government will explore how people can take their pension pots with them when they change jobs. This would be good – but This Writer won’t hold his breath waiting for it.

Turning to other growth industries, Hunt refers to nuclear energy – which is a contradiction in terms as nuclear energy is highly-polluting.

In the creative industry, he’s increasing tax relief for visual effects in movies, and 40 per cent relief on film studios’ business rates. These are expanding industries – soon to be second only to Hollywood in the world, Hunt says. Why is he cutting their taxes when they are clearly doing fine and well able to pay? This is economic sabotage.

He announces new tax reliefs for theatres, saying this should be of particular interest to the Shadow Chancellor who specialises in acting like a Tory. This is a jibe that should strike home – but it renders all his talk of higher taxes by Labour hollow; Labour is a Substitute Tory Party.

Oh, there’s investment in AstraZeneca, the drugs firm that developed one of the controversial Covid-19 vaccines. With questions unanswered about the effect of the vaccines, is this wise?

Public services: He refers to investment in 20,000 police officers halving burglaries and violent crime – which is a lie. The Tories cut police by more than 20,000 and numbers haven’t recovered.

He says spending on public services has increased – by one-third, in real terms, in the NHS. Where has the money gone, then? We’re not seeing it in provision.

Oh – he says the money needs to be used wisely. He’s keeping a planned one per cent growth in real terms, but wants to “reform” public spending.

In the NHS, he’ll spend £3.4 billion to modernise IT systems in order to unlock £35 billion by slashing the time lost in form-filling, carrying out operations and reducing missed appointments. In fairness, that seems good. How much of it will be lost in private-sector profits?

Apparently the NHS will have nearly £6 billion in additional funding. Why, then, is there no more money for junior doctors who earn only slightly more money per hour than the bouncer at This Writer’s local pub?

The Chancellor has been mentioning lobbying by fellow Tory MPs; this is election-year campaigning – he’s trying to flag them up as useful for their communities. But are they? Who lobbied those MPs for the measures he has announced and how will they improve living standards among the rest of us?

Taxes: Hunt says the money we earn doesn’t belong to the government but to the people. This is nonsense; money is the oil that lubricates the economy and governments always control the amount we have because they control the amount we are taxed.

To prove this: Hunt went on to announce taxation of smoking and vaping, in order to discourage it by forcing smokers to lose more of their cash. See how it works? The money you keep is always dependant on a government’s priorities and that is why the richest people in the UK have increased their wealth massively over the last 14 years.

Non-dom taxation has been a political football in the run-up to the Budget. Hunt is abolishing the current system – as expected, to derision from the Opposition benches. He’ll replace it with a “residency-based” system. New arrivals from April 2025 will not have to pay tax for four years, but from that point onward, they’ll pay the same taxes as the rest of us.

Finally – the biggest announcement was a cut of two per cent in National Insurance – from 10 per cent to eight per cent for employees, and from eight per cent to six per cent for the self-employed.

It’s a £900 cut for employees and £450 for the self-employed (showing how those of us who work for ourselves are struggling?) – but what will be lost as a result?

He didn’t say. This is a Budget that is heavy on the tiny details of individual funding announcements and light on the details of public services that will be cut.

Oh, and I’m hearing that the overall tax burden is still rising because tax thresholds – the amount of earning that people can do before paying tax – are still frozen. So much for the “tax-cutting budget”!


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Want to know why you won’t inherit your parents’ house? Here’s Gary Stevenson

For sale: older people are selling their homes to pay for care in later life – to rich people who can afford them. Younger people can’t afford to get on the housing ladder (other estate agents are available).

Gary Stevenson’s appraisal of why people don’t get to inherit houses and can’t buy them is nothing more than accurate observation of trends in society.

Your parents think you can afford to buy a house because they could afford to buy theirs – so they sell theirs to pay for care in their twilight years. Meanwhile, you can’t afford to buy a house because they have become much more expensive and your generation is poorer than theirs.

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The reason for that is, money is being drawn up, away from the poor and the middle-class towards the rich.

His solution to this is correct too, as far as This Writer is concerned.

Taxation has long been acknowledged as a way of re-balancing standards of living; it is only over the last few decades of neoliberalism that this has been abandoned in favour of shrinking state services to force us into buying inferior privatised rubbish instead.

All we need is a government that is willing to use taxation for the good of society as a whole, rather than the enrichment of the few.

It won’t be a Conservative government, or a Labour government under Keir Starmer.

But it is possible to have such a government after the next general election.

All you have to do is engage your brain when considering the policies of the candidates in your constituency.


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Want to know the real reason for inflation? TAX

HMRC: if you’re rich, you don’t have to pay your taxes and probably won’t be investigated for it – but if you’re poor you can guarantee they’ll come after you for the tiniest amounts.

Does the UK have the worst tax collection system in the world?

It would explain our recent inflation problem – with huge amounts of public money going to the rich (for nothing), who aren’t paying tax back on it.

Taxation limits inflation by taking money out of the economy to balance the amounts being put in by government spending plans every year.

If HM Revenue and Customs doesn’t bother to tax the people who pay the largest amounts, then the economy is flooded with too much money and inflation rises. Right?

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Now we find that HM Revenue and Customs aren’t even bothing to investigate rich tax dodgers any more:

This is from the Guardian article:

The number of civil investigation cases opened by a HM Revenue and Customs (HMRC) fraud unit investigating offshore, corporate and wealthy taxpayers has fallen by more than half in five years, figures reveal.

The Observer reported last month that HMRC has not charged a single company under landmark legislation to crack down on tax evasion. Campaigners warned that HMRC was undermining its own deterrents by failing to use its criminal enforcement powers.

The new figures, obtained by the Bureau of Investigative Journalism, suggest that the tax authority’s civil enforcement in its fraud investigation service has also declined alongside its use of criminal powers.

Civil investigations opened by the offshore, corporate and wealthy unit, part of HMRC’s fraud investigation service, fell from 1,417 in 2018-19 to 627 in 2022-23.

Civil inquiries and investigations declined sharply in 2020, when the Covid-19 pandemic interrupted HMRC’s enforcement activity. But despite a significant rise last year, the number of cases remains well below pre-pandemic levels.

The number of civil cases that were formally opened by the fraud investigation service, which can examine the tax affairs of any taxpayer, fell by 28% in the same period, from 17,424 from 2018/19 to 12,585 in 2022/23.

The article also states that HMRC says its fraud investigation service is focusing on the highest-value tax fraud and the figures do not take account of overall compliance activity, with 300,000 compliance “interventions” opened in 2022-23, securing £34bn in additional tax revenue.

HMRC says that since 2018-19 it has opened more than 1.5m compliance interventions, securing £136bn. HMRC says work is continuing on estimating figures for the offshore tax gap.

But here’s the catch: the vast bulk of this “compliance activity” is focused on the poor, not the rich – because if you’re poor, you’re easy pickings and won’t put up much of a fight when money is taken off you by the government. Am I right?

Is it good government? Or is it gangsterism?


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What really caused the inflation crisis? Here’s Gary to explain why rich people have your money

The real cause of inflation: the super-rich sucked up government cash that was given out to keep working- and middle-class people alive during the Covid crisis – by being the providers of the services and supplies everybody else needed. But that was a crisis and it should be time to normalise the situation. Why won’t politicians do it?

According to Gary Stevenson, governments like those in the UK and US caused the post-Covid inflation crisis by giving away thousands of pounds to keep us all going when the economy was locked down.

The problem was that those of us who normally work for a living had to then use that money to pay our bills (that’s not including This Writer; I just carried on writing Vox Political all the way through and lived on the money I earned from it, plus savings – those were happier days) while the rich, who issue the bills that we have to pay, just sucked up all the cash.

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They then started using that cash to buy what they could – not luxury items, because they were forbidden from doing it due to the shutdown of the economy, but so-called economic assets like houses. This stopped the rest of us from being able to buy them by keeping prices high – as Gary has discussed in previous clips.

Notice: he doesn’t say there was anything wrong with governments spending the money in the way they did; people needed cash to survive and it was inevitable that providing it to them from the Treasury, rather than the economy, would increase the national debt and massively increase wealth inequality between the poor who spent the cash and the rich who received it.

But because the circumstances were extraordinary, and the result was an unbalanced economy (increased inequality), the government should then have taken action to re-balance the economy by using the levers available to it to re-distribute the wealth.

It should have taxed the money back off the rich. Logically, the government could have got away with calling it a windfall tax because that’s what it would have been.

That hasn’t happened.

And neither of the ‘Big Two’ political parties – Labour and the Conservatives – are even considering such a rebalancing of the economy. Instead, they are both planning to bake it into our lives for a long time to come.

So we can say that Labour and the Tories both intend to increase wealth for the richest and poverty and debt for everybody else – and that includes those of you who are middle-class, sitting there smugly thinking you’ll be all right (you won’t).

There’s only one answer, but This Writer doubts many people will take it up.

You have to think for yourself.

That’s right; you have to get details of the political plans of every candidate standing in your constituency in the general election and you have to work out which of them – if any – intend to re-balance the economy to prevent us all falling into this debt trap.

How do you fancy that?

And politicians? Here’s a challenge for you:

Are you going to produce manifesto commitments to tax the money back off the super-rich – who don’t need it, remember – and re-balance the economy or are you too scared of them to dare upsetting them?


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Labour is planning to betray its supporters by cutting taxes for the rich

Taxes are for poor people: under Keir Starmer and Rachel Reeves, it seems this is the Labour Party’s attitude.

At a time when everybody with any sense is screaming for governments to tax the rich equitably, Keir Starmer’s Labour is promising to cut taxes for billionaires.

Look:

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Here’s where you can see Shadow Chancellor Rachel Reeves confirming the policy:

This is a Labour Party that has lost its way and may never find it again.


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Alleged PPE profiteer Michelle moans after husband is accused over business tactics

Ill-gotten gains? Michelle Mone posed on the deck of her husband’s £6 million yacht, ‘Lady M’ – which may have been bought with government money, paid for PPE equipment during the Covid crisis – that didn’t work.

Michelle Mone, the Ultimo bra businesswoman who became a Tory peer and then allegedly made millions pushing useless PPE on the government through the illegal ‘VIP lane’, is not happy.

Apparently her husband Doug Barrowman may soon be nicked by HM Revenue and Customs for tax avoidance:

Lady Mone seems to think her husband’s woes are due to the efforts of tax expert Dan Neidle, who was most recently seen explaining why Post Office Limited may become insolvent after allegedly fiddling its own taxes relevant to the sub-postmasters scandal.

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Apparently he’s about to publish “serious allegations” about Barrowman and his business:

Mr Neidle has been happy to draw attention to Lady Moan’s rant, so one supposes she can’t say he hasn’t given her the right of reply. Here it is:

Has he advised corporations on tax avoidance? He says no:

Still, let’s keep an open mind and see what she says, yes?


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Post Office Limited is in tax trouble and may go insolvent #PostOfficeScandal

How convenient for the Post Office!

So the Post Office accounts were mis-stated, meaning there is a huge tax liability that has wiped away profits made by the firm. That in turn means bonuses paid to executives should not have been handed out. And it means the organisation may also be insolvent – so the public purse will once again have to fund the incompetence of a government-owned mess.

There’s the question of tax paid on the money POL took from sub-postmasters to “balance” the alleged thefts – money that should have been paid back to the people the company wronged, of course.

What about the non-tax-deductible costs of prosecuting these sub-postmasters under false pretences – costs that date back more than a decade?

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What about its legal fees in fighting the sub-postmasters’ court case – a case that should never have had to be brought?

And finally there is the question of funding by the government – as a shareholder – to POL; this money is taxable too.

Mr Neidle has published a thread on ‘X’, explaining the matter further:

So, not only is the Post Office insolvent, not only is it incompetent (in failing to file proper tax returns for more than a decade – at least), but it is also likely to ask the public – who already pay the Post Office for the services it provides – to cough up the huge shortfalls in cash.

Funny, that. When sub-postmasters were wrongly accused, they were forced to pay the money back, prosecuted and some went to prison. With this firm correctly accused of tax fraud (or so it seems), should we not be seeing executives and accountants forced to repay their ill-gotten gains, prosecuted and imprisoned, rather than be punished for it ourselves?


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Jeremy Hunt nailed over claim to be cutting taxes for working people

Jeremy Hunt: he was laughing on the other side of his face when Martin Lewis had finished with him.

It’s great when someone nails a Tory politician over a falsehood they uttered.

Here’s what happened when Martin Lewis met Jeremy Hunt on the Martin Lewis Money Show, according to the Daily Express:

Appearing on January 9’s Martin Lewis Money Show, Mr Hunt insisted that he wants to cut even further to put more cash into ordinary people’s pockets during the cost of living crisis.

But Mr Lewis floated the idea that he’d only brought in cuts to National Insurance on January 6 – a date he branded “unusual” – so that people could see the modest benefit of the policy before fiscal drag means No10 taking more cash through taxes.

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Mr Hunt insisted that “we wanted to bring it in as quickly as we could” in order that people could have vital cash “after a period in which taxes have gone up in order to pay for the cost of the pandemic”.

The Chancellor – who has been repeatedly urged to cut taxes further with a general election looming – added: “We can’t get all the way back to where we were before the pandemic in one go.”

Mr Lewis pressed the Chancellor…

Indeed he did:

He was exactly right – as This Writer explained here.

No wonder Hunt looked like a rabbit, caught in the beam of a car’s headlights. He had nowhere to run and nowhere to hide.

And it made any further tax-cutting promises seem equally deceitful.


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Tax cuts? The Tory tax take is RISING after Hunt’s autumn statement

Jeremy Hunt: he announced tax cuts but we’ll be paying more. No wonder he’s looking less than sane.

What a swindle.

Chancellor of the Exchequer Jeremy Hunt announced tax cuts in his autumn statement yesterday, sure.

But he has frozen the thresholds at which people start paying taxes at particular rates. With pay rises taking place, this means more people will pay more tax.

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Here’s Money Saving Expert Martin Lewis to explain it far better than This Writer can:


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