Sunday, September 23, 2012

It's reform not thievery we want

It's fairly typical of the mentality of the Lib Dem's that they choose to target a certain group whilst accusing them of doing something perfectly legal, something which the government via its convoluted robbery with menaces tax collection system encourages.
Individuals with assets of more than £1m face a new crackdown on tax avoidance, Lib Dem Treasury Chief Secretary Danny Alexander has revealed.
The number of people working in the Affluence Unit (AU) of HM Revenue and Customs is to increase from 200 to 300, to cope with the additional workload.
Previously, the unit only scrutinised the tax affairs of people with assets and property of more than £2.5m.
Mr Alexander told the Mail on Sunday the wealthiest "should pay more".
Lib Dem leader Nick Clegg said at his party's conference on Saturday that the party wanted more tax on unearned wealth.
First off this is the same Danny Alexander who conned the Treasury out of over £100,000 by flipping his home back during the expenses scandal.
Second, avoidance is not illegal, it's pretty much a civic duty if you can manage it the Lib Dem's as ever forgetting just whose money it actually is.
Our tax system has evolved to a certain extent by allowing loopholes in it to encourage investment in certain areas, it was known as tax breaks, there are other bits and bobs too covering necessary expenses including laundry costs. All in all though it's a bit of a dogs dinner and certain specialists at the high end of the market will for a price advise their clients as to the best way to set up their finances so they pay the absolute minimum of taxation, the savings made more than covering the cost of hiring an accountant. Often enough it's the accountants who know the system better than government ministers or even the treasury itself and one of the loopholes they've exploited is the offshore business account which only pays a fraction of the taxes a mainland based account would.
It's all perfectly legal and the requisite taxes are being paid yet the Lib Dem's are determined to go after anyone doing a legal activity rather than amending the system itself. They're especially targeting unearned wealth as in inherited wealth such as those living in houses that they got from deceased relatives, though what business it is of theirs who owns what is beyond me.
The thing is, percentage-wise the wealthiest do pay more, even if they are exploiting the system, what the Lib Dem's appear to want is for them to pay more than their fair share, or rather more than the system allows and instead of reforming the system they're choosing the path of punitary one off raids.
It's just another offshoot of the politics of envy which we've come to see embodies the thinking of those on the left of the political spectrum with regard to anyone having more money than they do.
Again and again we see those in power targeting those who are not breaking the law rather than reducing the size of the state and reforming the tax system itself to be more fair with regard to some form of flat rate or land value tax covering everything rather than the complex system of personal, corporate and value added mess we have today.
Though perhaps first we ought to be rid of the den of thieves that keep being elected year after year...

1 annotations:

Anonymous said...

How would this work for ya?