So we have a new bank levy – to be charged on bank assets.

The consequence is obvious: banks want lend. That’s the last thing we wanted. What we actually wanted was a tax on those transactions banks undertake that fuel bonuses and harm the economy, international relations and the stability of democracy itself. Those are the massively speculative transactions which brought banks down – and which continue unabated.

A financial transaction tax – a Robin Hood Tax – could have done that.

This bank levy won’t.

So it’s the wrong tax at the wrong time with the absolutely guaranteed wrong outcome. Apart from that, full marks to George Osborne.

 

Am sharing an office with Andrew Holdenby of Reform who is jumping with delight at every benefit cut announced – laughing out loud with delight.

I cannot believe the callousness.

Budget on Twitter

 Budget  Comments Off
Jun 222010
 

I’ll be commenting live on the budget on Twitter – follow me at RichardJMurphy and #junebudget

 

The wealthy always offer the excuse that they’ve paid a lot of tax when caught using tax havens / secrecy jurisdictions. That’s what Liliane Bettencourt, the L’Oreal heiress has done. She’s been recorded referring to offshore holdings in the Seychelles and Switzerland and her defence is that she’s paid 400 million euros of tax in the last decade.

Liliane, hear me loud and clear. If the right number was 600 million I don’t care that you’ve paid 400 million. I do care if what you’ve paid is not enough, if that is the case. Big is not an issue. Right is. And it’s time the wealthy everywhere got that message.

 

Even the FT gets the unfairness of today’s budget. As it reports:

Mr Osborne will set out a “Budget for a parliament”. But he will insist that the Budget is “progressive” in intent, and will ensure that the poor and Britain’s economic future are not sacrificed in his attempt to balance the books.

Such a combination of tax and spending measures would, however, imply huge cuts of 20 per cent or more in real departmental spending over four years, or a combination of smaller cuts and larger reductions in welfare spending.

Spending cuts of such a scale could not be presented as “progressive” because public spending is concentrated in poorer areas and poorer families, suggesting that the Budget will have a sting in the tail.

Exactly so.

Fairness and progressivity are impossible when imposing cuts of the level planned.

Those on average incomes and those on low incomes are going to be hit very, very hard today.

And that is wholly unjust.

There is an alternative. Caroline Lucas MP and I have shown this can all be done, when needed, by raising tax. This pain is, therefore, a choice that Gorge Osborne has made. He has chosen to inflict untold economic and social damage on the UK. He has chosen undermine our society. We should never forget the fact that none of this pain is necessary.

 

I am doing live commentary on the budget on the Jeremy Vine show on  BBC Radio 2 today from about 12.20pm onwards.

I’m on with Andrew Holdenby from Reform. Should be fun!

 

The National Housing Federation has predicted that forthcoming housing cuts will lead to the loss (or lack of creation) of 200,000 jobs, and to 350,000 people being added to housing waiting lists. If the housing budget is cut by a third, it predicts that 142,000 new affordable homes will not be built.

And that’s just one sector.

The slaughter that George Osborne will un leash on the UK economy today will have repercussions far bigger than that. And every one will be a personal tragedy.

Hat tip to TUC Cuts Watch.

 

A thought before today’s budget:

Which is another way of saying:

I’d suggest the fans of Adam Smith reflect on that today.

 

The Guardian reports that George Osborne said to Andrew Marr yesterday:

What’s controversial with some in my party is raising CGT. Here is a tax where at the moment we see massive income tax evasion, we see people shifting their income ‚Ķ and that’s not fair given the current situation, so we’ll deal with that.

George, have you been reading the TUC’s “Missing Billions”?

Or the TUC’s Capital Gains Tax report?

Because it sure as heck sounds like it.

Glad to know we’re on the same hymn sheet sometimes.

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