The Taxpayers’ Alliance have published a report this morning in which they claim:

 Over the last five financial years  £27.4 billion of tax revenue has been lost by  HMRC through remissions or write-offs.
 That is over £1,000 per household lost in tax over the last five years, or more than £200 per year.
 £5.9 billion was lost in 2010-11. If this money was collected, it would be possible to cut more than 1 per cent off the standard rate of VAT.
 Over the period studied, £4.4 billion has been lost in Income Tax alone. The amount of Income Tax lost in 2010-11 was 52 per cent higher than in 2006-07.

As a result they claim:

A much simpler tax system could help to avoid errors of this scale in the future, and  the deficit could be  reduced more quickly. The 2020 Tax Commission is exploring ways to make taxes simpler and less burdensome on families and businesses, and will be publishing its final report and recommendations in Spring 2012.

I’m discussing this on Radio 5 this morning so let’s just look at the claims.

First, almost all the remissions are on tax credits. So they’re not part of the tax code. That’s a benefit.

And 90% of the bad debt is due by companies that have gone bust. So there’s not a hope of the Revenue getting the cash. I know that because the Revenue have said so.

Which leaves not a lot left over, almost all of which is due to the fact that the Revenue haven’t got the resources to track people who move, or refuse to pay relatively small suns of tax which aren’t worth taking to court.

So how much of this is due to complexity in the tax code? About the square root of not a lot I’d say.

The TPA really do need to learn a little about tax, business, insolvency and debt collecting. In other words if only they knew just a little about the real world of business they so claim to adore they’d really be a lot wiser.

Although maybe that’s giving them just a little too much credit.

 

As the FT notes this morning:


Republican lawmakers are studying ways for states to go bankrupt, a move that could enable them to renegotiate their pensions, but one that will be met with fierce opposition in Congress and the financial markets

I have already drawn attention to the fact that a significant number of states and smaller jurisdictions in the US are close to bankruptcy and unable to meet their borrowing obligations within technically balanced budgets which they are, perversely, required to maintain in a pretence that in many ways defies belief.

Here we see the reason why some think this risk worthwhile: they can reduce future taxes and so increase the income and wealth disparities in the US by welching on state employees if they can let states go bust.

This is right wing justice for you.

How long before the same is suggested by someone like the Taxpayers’ Alliance here in the UK for local authority employees, NHS employees and more besides in the UK? Not long, I suspect.

Watch this space, and be prepared for action.

 

The Tax Justice Network has a blog highlighting the abuse caused by the Channel Island’s VAT abuse. As they say:

Today, bang on cue, TJN was contacted by a retailer in England’s west country. She opened her business twenty years ago. It thrived for the first 15 years. Now she will be closing the shop in February 2011 and laying off her three staff. She places the blame for this closure entirely on the VAT loopholes, saying that "the imminent rise in the VAT rate from 17.5 to 20 percent was the straw that broke the camel’s back. Her shop was in a town which suffers from high unemployment and few amenities for young and old. Its closure will be another step towards Clone Town Britain.

This is the reality of unfair tax competition. And as they note:

As a postscript its worth noting that the west country retailer who approached Tax Justice Network this weekend told us she had originally contacted the Tax Payer’s Alliance, but quickly realised they aren’t interested in tax avoidance and market distorting practices. This VAT scam is costing the UK exchequer hundreds of millions of lost revenue, but that doesn’t seem to be a matter of concern to the TPA. We can’t help wondering why not…

I can explain that. Just as Jersey Finance has no interest in competition, real business, entrepreneurial activity, investment in jobs or the making of real profits, nor has the Taxpayer’s Alliance. They, Jersey and Guernsey are all after one thing: a quick, exploited buck.

The truth is that, as I wrote not long ago, tax justice is the best friend free markets have.

 

I note the Guardian’s report today on the Taxpayer’s Alliance conference in London. I think they fairly summarise it as an attempt to launch a version of the Tea Party movement in the USA in the UK. As the Guardian notes:

Libertarian US Tea Party organisations attended a conference in London today to share tactics with British and European taxpayer lobby groups, and described their activities as "an insurgent campaign" against their government’s tax and spending policies.

The move reflects an increasing desire within rightwing circles to establish a British version of the Tea Party "uprising", and a growing belief that expected union action against the coalition government’s programme of cuts could be harnessed to mobilise vocal counter-demonstrations. The Taxpayers’ Alliance also believes that public anger at the Revenue & Customs blunder that has left 1.4m people facing backdated tax bills could fan the flames of a wider anti-tax revolt.

"You could say our time has come," said Matthew Elliott, founder of the TPA, which has seen its supporter base rise 70% to 55,000 in the last year.

I also note Michael White’s comment that:

Europeans are not so easily inclined to hate the state or socialised medicine, more widely resistant to string-pulling by wealthy Berlusconis or Murdochs. The Tea Party too may implode. But as global power shifts eastwards, only the foolish would dismiss resurgent extremism on either side of the pond.

Quite so. The extremists – those who want to undermine the whole way in which our society works – are on the war path in the US, and want to be here in the UK.

It’s a nasty prospect – but then, this is a nasty philosophy: a philosophy that says that those who have cash survive and those who haven’t got cash do, quite literally not survive, at least as long.

A philosophy that says access to health care, education, retirement, security in the event of disability, legal representation, all means of leisure, safety and so much more is dependent entirely on your means to generate cash yourself – even if for any reason you are unable to do so. 

A philosophy that says nothing but money counts and that without it you’re worthless.

A philosophy that is brutal on learning for learning’s sake, the arts, culture, and understanding.

A philosophy that wants society created on the basis of one thing and one thing alone: and that is fear, the fear that will hold people in the power of those with money who can exploit them.

The Taxpayer’s Alliance might think it’s time has come.

I say the time has come to expose it for the fraud it is: the extremists that they are, the nastiness that they represent, the harm that they seek to cause, the untold misery they wish to create.

That’s the reality of the Taxpayer’s Alliance – they’re a politically extreme threat to the ordinary people of the UK. No other description is appropriate.

And what’s really worrying is that, like the Trots in the 80s, these people are planning entryism into a major political party – the Tories – where they al;ready have powerful friends. I’m entirely willing to agree Cameron is not of this mould – but many in his party already are – and unlike Kinnock Cameron hasn’t the strength to throw them out. Which is also profoundly worrying.

 

Tory tax allies ‘subsidised’ by the taxpayer | Politics | The Guardian .

As they might say “This is an outrageous waste of taxpayer money.”

Of course they might add “These are funds being routed through an unaccountable quango to be used for an unaccountable purpose.”

But I would not possibly do that.

 

The Other TaxPayers’ Alliance | Massaging the figures: the Public Sector Rich List.

Clifford Singer exposes the Taxpayer’s Alliance data on the public sector rich list for what it is – bogus and inconsistent data.

More importantly, as he notes:

If the TPA showed any concern for the lowest paid – for example by supporting rather than attacking a living wage – the Public Sector Rich List might appear less like another cynical attempt to undermine the public sector in general.

Remember what the Taxpayer’s Alliance is: a far right pressure group from beyond the fringes of the Conservative party, funded (it seems) by the Institute of Directors, at least in part, to undermine the fabric of our society as represented by the welfare state with its inherent logic of a universal right to education health and well being.

 

The Other TaxPayers’ Alliance | Happy birthday to us!.

Good work Clifford

Keep at them!

 

The Taxpayers’ Alliance may finally have over-reached themselves.  They have just launched a cinema advert claiming the EU costs each UK citizen £2,000 per year.  As Left Foot Forward show, the actual figure is £15 per year according to the EU Budget.  That’s not a typo: the TPA are genuinely claiming that each UK taxpayer pays £1,985 more than the figure stated by the EU.

Left Foot Forward are asking people to complain to the Advertising Standards Authority here.  It would be great if the TPA’s rather, shall we say, ‚Äòrelaxed’ approach to fiscal data got a formal rap but I think hitching themselves so closely and publicly to a cause beloved of the hard right reveals to everyone where they really stand.  It is also worth noting that the advert  (rather subliminally) includes a clip of Gordon Brown stating that the “UK benefits from EU membership” while an anxious taxpayer looks at the bill from the EU.  And there was I believing the TPA didn’t get involved in party politics.

Of course, none of this will make any difference to their high profile in the right wing press but it does make it ever more difficult for reputable and unbiased media sources to use them as a neutral voice.  As the Other Taxpayers’ Alliance pointed-out a couple of weeks ago, the BBC seem to be getting increasingly wary of the TPA.

It all points to a paradox in the TPA strategy: as their profile and their confidence grows, the more people (and journalists) become aware of who they really are.  As a result, it becomes more difficult for them to pull off the trick of claiming to be the disinterested voice of the ordinary taxpayer.  You can fool some of the people some of the time etc‚Ķ

NB: this blog originally on the Touchstone blog by Adam Lent but too good to miss

 

The Other TaxPayers’ Alliance | BBC admits errors in TaxPayers’ Alliance reporting.

In a recent post we asked who would be the first journalist to quote the TaxPayers’ Alliance and its “partners” – the Drivers’ Alliance and Big Brother Watch – in the same story?

The bad news is that the BBC almost won the accolade, scoring two out of three for its report, “Drivers ‚Äòlosing out’ to railways”. The good news is that an Other TPA member complained and received the following reply from BBC News Interactive UK Editor Pat Heery:

“I accept your point that we should have picked up on the link between the two alliances we quoted in our story. But, while the Taxpayers Alliance can be accused of many things, this was a legitimate report, carrying a rebuttal from another voice.

“I do not think that all Taxpayers Alliance stories have to be balanced by comments from The Other Taxpayers Alliance. However I have asked staff to avoid reporting stories which are generated solely by the Taxpayers Alliance and, where we do quote them, that we supply some context as to who they are.”

That is progress! Well done The Other TaxPayers’ Alliance