Politics » Tax Research UK

Salmond and the Scots hold all our futures in their hands

Jan 112012

Don’t get me wrong about Scottish nationalism. As someone who is quietly proud of being an Irish as well as a UK citizen, and who is a republican at heart, I understand all the reasons why many in Scotland may want to be independent of the rest of the UK. And I think Scotland may well be an entirely viable self-governing country – without being a tax haven (heaven forbid).

But I’m also deeply worried about Salmond’s plans. If Scotland is independent the case for the remaining union with Northern Ireland is weak and I fear that leads to trouble.

And, candidly selfishly, the idea of England and Wales as a permanent Tory fiefdom scares me rigid, and leaves me wondering if there would then be any constraint on the City and its madness.

So whilst I see all the appeal of Scottish independence for the Scottish I do really rather hope they don’t, whilst accepting all the biases and prejudices that saying so involves.

It was skill that built the strength of this country – not entrepreneurs

Courageous State, Economics, Politics 7 Responses »

Jan 082012

This is so true:

It is an argument I make in The Courageous State.

Hat tip, Think Left

The threat to democracy is very real and present right here in the UK

Ethics, Politics 7 Responses »

Jan 062012

I was pleased to see this from Philip Stephens in the FT this morning:

Hungary’s prime minister presents a reminder – should anyone on this continent need one – of the familiar trajectory from economic chaos to political authoritarianism. The European Union has had two grand projects since the fall of the Berlin Wall: the single currency and the advance of democracy eastwards. The euro is now in serious trouble. Mr Orban sends a powerful message about the perils facing democracy.

This week saw the introduction of Mr Orban’s new constitution. Suffused with ethnic nationalism, it reeks of an ambition for one-party rule. It promises repression of personal freedoms within Hungary and, through an extension of citizenship to Hungarian minorities elsewhere, threatens instability in ethnically-diverse neighbours.

The constitution has to be seen alongside a slew of new basic laws and the gerrymandering of the electoral system. Together, they bestow inordinate power on the ruling Fidesz party. The prime minister can claim to have won the 2010 election fairly. Now he is deploying a two-thirds majority in parliament to deny opponents the same possibility.

At least the realisation of what is going on is growing.

But we need to be aware that the threat is not just in Hungary.

Parliament cannot be dissolved without a two thirds majority here now.

The number of MPs have been cut to concentrate power.

And the Tories are blatantly seeking to gerrymander the electoral system in their favour.

Whilst the City of London runs a state within a state in the UK, aided and abetted by the abuse of the Crown Dependencies and their supposed quasi independence that is simply a mechanism for finance to undermine the rule of law and democracy in the UK.

The threat to democracy is very real – and present right here in the UK.

Democracy has in all but name already gone in Hungary – where next in the EU?

Ethics, Europe, Politics, Uncategorized 29 Responses »

Jan 042012

Paul Krugman posted this on his blog two days ago. I reproduce it as he clearly wants to give maximum coverage to the issue, as do I:

On New Year’s Day, the new Hungarian constitution became law. The Hungarian parliament has been preparing for this event by passing a blizzard of “cardinal” – or super-majority – laws, changing the shape of virtually every political institution in Hungary and making the guarantee of constitutional rights less secure. In the last two weeks alone, the parliament has enacted so many new laws that it has been almost impossible to keep up. And to top it off, there was also a huge new omnibus constitutional amendment – an amendment to the new constitution even before it went into effect. By one commentator’s count, the Fidesz government has enacted 359 new laws since it came to power 18 months ago.

All of the laws connected to the new constitutional structure kicked into action yesterday if they hadn’t already taken effect. As a result, with the new year, Hungarians began living in a new constitutional order. In this new order, all of the escape hatches that would permit reentry into a constitutional democracy have been bolted shut.

I would urge you to read the rest of the long blog in question. It’s important precisely because it is so scary, and precisely because what is happening is so close to what many have predicted could happen in the UK.

In effect a deeply neoliberal government has done all it can to completely gut the Hungarian constitution and leave single party rule in perpetuity. In the process it is silencing the opposition, rigging the judiciary, stacking all government positions with its place-people, over-ruling local government and ensuring a flat tax system for the benefit of the rich in perpetuity.

This is totalitarianism back in Europe.

And no one is raising a murmur.

Why, David Cameron? Where is William Hague saying that this is wrong? And why hasn’t Hungary been expelled from the EU for this?

Or is this the pathfinder case for what the right wing governments of Europe plan for us all? Certainly the Merkozy deal to outlaw Keynesian intervention looks like it.

Hat tip: Howard Reed

The biggest threat of 2012 is the end of democratic choice in Europe

Ethics, Politics 41 Responses »

Jan 012012

It’s hard to say what the biggest threat of 2012 is but I’ll nominate one all the same.

Andrew Rawnsley celebrates democracy in the Observer this morning but democracy counts for nothing if there is no choice on offer. That is the goal of neoliberalism, which has long seen democracy as a market impediment. But now neoliberals are seeking to enshrine their thinking in EU law by outlawing Keynesian intervention in the economy. That is the aim of the December 2011 agreement on the future economic management of Europe which effectively bans deficit funding even though this is the only known and proven mechanism for ending recessions. In effect the neoliberal leadership of Europe is as a result seeking to end democratic choice and the role of government in the management of the economy henceforth – guaranteed by international law that will over-write local choice. The only option that will legally be offered to electorates henceforth will be a right wing one. No other option will be allowed, by law.

I call that the biggest threat of 2012.

And it’s happening on our doorstep and with the implicit consent of our government - which has removed itself from the debate so that progress can be made on this measure designed to reward the 1% at cost to the 99% without the UK ever being heard to even make comment, let alone objection.

If you want some idea of the size of the mountain the left has to climb then this is it. In effect a totalitarian neoliberal regime is being built across Europe and the press isn’t even raising comment or objection.

Perhaps that’s the most worrying bit. It certainly proves that Rawnsley has entirely missed the point. Having democracy when there’s nothing to choose from is not democracy at all.

Twenty years of private pensions have only made the rich richer – and NHS reform will do the same

Conservatives, NHS, Pensions, Politics, Uncategorized 5 Responses »

Sep 022011

Phillip Inman noted in the Guardian yesterday that it was entirely possible for someone to have saved for twenty years in a personal pension using an actively managed fund and for their investment now only to be worth what they paid into the fund. Indeed, that is not just possible but likely since most managed funds have seriously under-performed the FTSE indices before charges are taken into account.

As I have shown, the subsidy to the pension industry form the tax payer each year is enormous: some £38 billion in a year when last I looked.

And as Philip Inman rightly notes, vast amounts of that have been used to pay management fees, brokers fees and commissions all of which have enriched the financial services industry and none of which have produced a return for pensioners – many of whom will face poverty in old age because their funds have been stolen (I use the word deliberately) by the City.

Why say this again? For three reasons. First, because it says massive pension reform is needed to stop this abuse. That is possible – Dutch pensioners get 50% more pension for their investment than do UK based pensioners because they are not ripped off as we are.

Second, to say that as a result the refusal to consider the pension reforms I recommend – requiring that at least 25% of all new pension contributions made in the UK go into new investment that will result in new investment and job creation in the real economy – is absurd. The result to pensioners is bound to be better than now and yet even those who should be horrified with current pension abuse cannot see that they have a duty to support such change.

Third to make the point that in the 1980s we were told that private pension funds would solve all pension problems, no one would be exploited and the world would be a better place for the private pension revolution. We were lied to by a Tory government. we’re being lied to again by a Tory government now who are saying that NHS reform will result in efficiencies, savings, no charges and a better service. That’s not true. It’s not possible that it can be true. I’ll be exploring why in some depth in the Courageous State. But still the lies are rolled out. And what will actually happen is something like the pension debacle – the rich will get richer and the est of us will get a lousy service leading to desperation at the prospect of real loss of well-being we once enjoyed.

You have been warned.

Just deliberate red herrings?

Politics 18 Responses »

Sep 012011

The government has done another U turn. First it supports the Field / Dorries abortion amendment. Now it does not.

There was a highly effective lobby on the issue targetted at MPs. The result is that victory at this stage can be claimed.

It was the same on the sell off of the Forestry Commission.

Now do not for a moment get me wrong: this is vital stuff. But just suppose for a moment the government is setting these issues up as decoys?

After all, they might think winning on destroying the NHS is worth a decoy loss on abortion. And preventing banking reform is worth losing on a few trees.

Are they that clever? Well I would be surprised, but let’s not distracted is all I am saying. The big stuff is still going on. Democracy is being eroded. The NHS is being destroyed. Services are being undermined. The economy is in dire trouble and people’ lives are being wrecked.

Winning skirmishes is good. The battle to preserve anything close to effective government on behalf of the people of this country is far from over.

The tyranny of democracy

Conservatives, Ethics, Politics 38 Responses »

Aug 302011

I come across the above phrase and others like it increasingly often these days. It is widely used in right wing libertarian commentary and increasingly openly as far as I can see and hear amongst Tories.

What it means is that democracy is at fault in imposing the wish of the majority who vote for parties who propose progressive taxation meaning that those with above average incomes pay more tax as a proprtion of their income than do those of lesser means. Since these people think all taxation is theft and say so often they consider this taxation to be tyranny.

Their solution is a simple one. They want the abolition of democracy and its replacement by rule by the market – represented by rule by wealth, of course.

It appears they are set on their way. When we can see abortion rights rolled back as a result of similar far right opinion do not doubt that moves to remove Labour seats and to undermine Labour funding aren’t direct moves against the ‘tyranny of democracy’ by ensuring there is no opposition in the UK capable of funding an assault on the Tories.

Only a year or two ago I would not have believed this but having seen the straightforward far right obsession of many new Tory MPs and their total lack of concern about anything but serving the interests of wealth I have changed my mind.

Not only is the Nasty Party back (as described by Theresa May) but it’s now moving on democracy itself.

Of couese they will deny it but the real question will not arise from addressing that denial. The real question is about how we are going to address this real tyranny that is threatening democracy itself.

Is the cabaret over?

Economics, Ethics, Politics, Uncategorized Comments Off

Aug 142011

I saw Cabaret at the extraordinary Westacre Theatre last night.

The production was stunning. I spent many years in London, and for much of them saw a great deal, for example, of all that was produced at the Royal Court. But there was as much, in very many ways, as notable about this production in a tiny studio theatre in Norfolk as those major London productions.

And the musical could not have been better chosen for the moment if Westacre had been able to choose it with a few days notice.

For those who have not seen Cabaret for a while I recommend doing so. It’s about 80 years since the events that it tells of. It almost 40 years since the film was made – when maybe it felt safe to do so.

Its relevance has, perhaps, never been greater.

The audience, stunned to shocked awe in appreciation of an amazing cast, seemed to think so.

It provides excuse for anther piece of music. but as it is refusing to embed a link will do.