{"id":35727,"date":"2016-12-15T07:24:42","date_gmt":"2016-12-15T07:24:42","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=35727"},"modified":"2016-12-15T07:24:43","modified_gmt":"2016-12-15T07:24:43","slug":"the-social-care-crisis-is-about-a-lack-of-courage-to-say-those-that-have-need-pay-a-bit-more-for-those-who-have-not","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2016\/12\/15\/the-social-care-crisis-is-about-a-lack-of-courage-to-say-those-that-have-need-pay-a-bit-more-for-those-who-have-not\/","title":{"rendered":"The social care crisis is about a lack of courage to say those that have need pay a bit more for those who have not"},"content":{"rendered":"

As the FT reports this morning<\/a>:<\/p>\n

\"screen-shot-2016-12-15-at-06-59-59\"<\/a><\/p>\n

First, note the mockery this makes of local autonomy.<\/p>\n

Second, note the blame shifting.<\/p>\n

Third, note what I have already written about the injustice of this<\/a>.<\/p>\n

Then consider the alternatives. One of making council tax more progressive<\/a>\u00a0but when \u00a0it is appreciated that this is a central government decision the options become considerably more significant.<\/p>\n

The funding required appears to be between \u00a32.6 billion and \u00a35 billion. This is a range of tax reliefs that could be altered to help raise that sum:<\/p>\n

\"screen-shot-2016-11-20-at-10-16-38\"<\/a><\/p>\n

The data comes from HMRC. It understates the true cost of pension reliefs because tax paid by pensioners is offset against it and there is no economic justification for that.<\/p>\n

Then let's remember the UK has a glut of savings at present.<\/p>\n

And that tax reliefs for those with savings automatically means that the tax benefit goes to those who do not need it: if you can save you can meet your current need. The social care crisis is about meeting the needs of those who cannot do that.<\/p>\n

This list also ignores the \u00a33 billion or more cost of small business incorporations at present, as estimated by the OBR.<\/p>\n

And it ignores that if corporation tax was at a sensible rate of at least 25% more than \u00a310bn of extra revenue a year would be available and some of that \u00a33 billion abuse would be prevented.<\/p>\n

So, how to raise the money needed if not by council tax?<\/p>\n

First, raise corporation tax to 23%. This would have no impact at all on UK employment, just as the cuts in it did not. It might raise \u00a36 billion.<\/p>\n

Second, cut higher rate pension relief. That would save between \u00a38 billion and \u00a310 billion.<\/p>\n

Then eliminate ISA tax relief. What is that about? That's another \u00a32.6 billion saved.<\/p>\n

And get rid of the savings rate of income tax which also leaves \u00a31,000 of income tax free.<\/p>\n

If you want more, get rid of VCTs. EIS, EMI and other such schemes none of which can be shown to have any real benefit.<\/p>\n

And by now I have so over-funded social care we can help others as well.<\/p>\n

I make the point deliberately.<\/p>\n

There is no funding crisis for social care.<\/p>\n

There is no need for regressive tax rises.<\/p>\n

There is no need for this political stress.<\/p>\n

The capacity to pay for the social care we need exists. It can be delivered without cost to economic well-being. It only requires willing to reduce some of the tax subsidies to the wealthiest in this country who do not need the reliefs they are given.<\/p>\n

It only needs someone to say we are punishing those in need as a matter of choice.<\/p>\n

It only needs a little courage. The courage that's needed to stand up to those who have and tell them they need to forego a bit for the sake of those who have not.<\/p>\n

And that's what is in short supply.<\/p>\n","protected":false},"excerpt":{"rendered":"

As the FT reports this morning: First, note the mockery this makes of local autonomy. Second, note the blame shifting. Third, note what I have
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