To a rational person it would seem that:
- making ordinary and less well off people shoulder more than their fair share of the burden of austerity simply takes money out of the economy – prolonging the recession.
- giving tax breaks to those who already have more money than they can spend simply means that money will be pumped into off shore tax havens.
- natural justice suggests that those who have gained the most from the financial free for all of the last thirty years should contribute the most towards sorting out the resulting mess.
Life is more complicated than this but what is clear is that a way of redressing this imbalance would be to collect the billions of pounds of tax that is currently avoided, evaded or simply stored in tax havens. The sums of money are huge and would go a long way to solving our problems. The UK is responsible for the majority of the world’s tax havens which include London if you are a non UK citizen or non domiciled. The UK could unilaterally make a huge difference to ordinary tax payers throughout the world.
A new anti-tax avoidance principle in UK law would be a small start. Here is a copy of an email (thanks to http://www.taxresearch.org.uk) that I have sent to my MP. Below the message are links to further information.
Dear Mr Glen
General Anti-Tax Avoidance Principle Bill (HC Bill 25)
I understand that this Bill, in the name of Michael Meacher MP, is to come before the Commons on Friday.
There is a growing sense of grievance and indeed outrage that many in our national community, both businesses and individuals, are dodging paying their due amount of tax. This is leading to insufficient funds in the exchequer, for example to maintain benefits for disabled people – cuts to items such as the disability allowance would be a scandal in the aftermath of the highly successful Paralympics.
I believe in Tax Justice, believing that tackling tax abuse, whether it be tax avoidance or tax evasion, is a desperately-needed global economic reform. I also strongly support the phasing out of tax ‘havens’, which the wealthy use to avoid their tax responsibilities. This Bill will greatly aid that process by hindering the opportunity for people from this country to use such places.
Please would you support this Bill and let me know your views on this vital topic?
Copy of a message you could send to your MP: