If Nick Clegg wants to talk tax fairness I'm delighted, and welcome it. I'm wholly non-partisan in my approach to those who want to do so, but that does not mean I do not note from whence they come to the debate. Nick Clegg comes from an unfortunate place.
He is Deputy Prime Minister. He is responsible for the actions of this government. He is responsible for:
- Increasing VAT to 20%, it's highest ever level. This is a deeply regressive tax.
- Cut the top rate of tax from 50% to 45% - a deeply regressive tax measure as it saved the highest earners over £6 billion a year in my estimate if the impact of income shifting is ignored;
- Cut the top rate of corporation tax for big business by 7% whilst doing nothing for small business;
- Increased the personal allowance to supposedly take people out of tax and yet cut their beenfits to pay for it; a deeply regressive move. The allowance increase did not help the poorest; it helped those on middle incomes most (I'm not saying they didn't need help, but Clegg's claim is wrong);
- Introduced territorial corporation tax to encourage UK companies to shift their profits into tax havens;
- Introduced a new company treasury tax at just over 5% - so long as the treasury function was moved to a tax haven;
- Did not align capital gains tax and income tax rates;
- Has introduced a general anti-abuse rule that will not tackle most tax avoidance;, by design;
- Cut the staff of HMRC by about 20,000 to ensure that tax cannot be collected.
I could go on. But my point is this: talk tax fairness by all means, but acknowledge what you have got wrong and tackle it as well. Otherwise talk is cheap.
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Nick Clegg is (or perhaps was since 2010) a member of ALTER, the LibDem group campaigning for the introduction of land value taxation. Same applies to Cable, Huhne (who he?) and other members of the LibDem front bench.
When I watched Nick Clegg in his Party Political Broadcast last night, I was reminded of Thatcher promising tax cuts, which was the way in which her Party in the eighties managed to get average and low income people to vote against their real interests.
I believe it was his only mantra.
It was noted in the eighties that many did not benefit from tax cuts because NI contributions were increased,unemployment rose dramatically, and interest rates soared so tax cuts would therefore not help large swathes of the poor. It was really only the rich whose taxes fell enough for them to get a real benefit overall.
Hidden losses of course were the cut to services and stories of people dying on trolleys in hospital corridors which I am sure will happen again inspite of the Staffordshire in voked rhetoric.
I am convinced that Nick Clegg is in the same mold, but hopefully has lost all credibility.
I would add to the list above that more people are struggling with debt, higher rents and energy prices than in the eighties, which also negates a small drop in tax.