Tendring
Topics…….on line
‘Though
cowards flinch and traitors sneer, we’ll keep the red flag……
…….tucked away safely out of sight’. That seems to be the message of Ed Balls,
Labour’s shadow chancellor, at the Labour Party Conference. Mr Balls appears to be determined to demonstrate
that he’ll behave ‘responsibly’ with public money if Labour wins next year’s
General Election. He proposes to do this
by emulating the policies of George Osborne with just one or two differences. He is just as obsessed with reducing ‘the
deficit’ as Mr Osborne and just as determined ‘to reduce government expenditure to do so’.
No, the government expenditure he has in mind
is not the £100 billion pounds ring-fenced for those totally useless and vastly
expensive Trident submarines pointlessly patrolling the high seas. He is going to freeze increases in children’s
allowances and, to prove that he really is the friend of working people, he’s
going to remove the entitlement to winter fuel allowance of the wealthiest
pensioners, reinstate the tiny tax increase on the incomes of the very highest earners, and impose a ‘mansion tax’ on the owners of stately homes valued in excess of £2 million! Oh yes – he’s also going to pursue those who
avoid paying their due amount of income tax; but (while they’re out of office)
they all say that don’t they?
Both Labour, and the Greens (with whom I agree
about most things), seem determined to tax the wealthy simply because that’s
what they are. The Green Party promises
that in the unlikely event of their forming a government they’ll impose a
special ‘wealth tax’ to relieve the wealthy of some of their fortune. Everybody also seems to imagine that by
raising the tax threshold of liability for income tax and taking increasing
numbers of low-paid workers ‘out of the
tax system altogether’, they are doing the poor a service. Raising that tax
threshold helps all income taxpayers.
The only folk it doesn’t help are those whose income is so little that they are
already outside the income tax system. Freeing more people from income tax
liability reinforces the myth that there’s a large
tax-free underclass supported by hard-working tax payers! In fact every one of us pays taxes in VAT or
customs duties virtually every time we buy goods or services, especially when
we buy tobacco, alcohol, or petrol, and every time we buy lottery tickets.
That’s one of the reasons why I have never bought a lottery ticket or scratch
card! People not liable to pay income tax, may pay a
larger proportion of their income through these indirect taxes, than do some
income tax payers.
I believe that income tax should be regarded
by every adult as his or her annual membership fee for the very considerable privilege
of being a citizen of the United
Kingdom . It should be paid by the very wealthiest
and the very poorest. What’s more,
paying that subscription should impose exactly the same burden on each one of
us. This could be achieved by making it
an equal percentage of every adult’s
gross income (before any of it can be salted away in ‘charitable trusts’ or
overseas investments). I reckon that a
tax (membership fee) of 20 percent of every adult’s gross income would probably
meet virtually all the government’s financial needs. The actual percentage could be calculated
each year.
Obviously 20
percent of a billionaire’s income would be a considerable sum while 20 percent
of the minimum wage or the job-seekers’ allowance would be very little. That minimum wage or allowance would need to
be raised, to enable even the poorest of us to pay the ‘membership subscription’
without being reduced to starvation or homelessness. Then everyone, rich and poor alike, would
have a stake in our country’s future and get rid of the myth that hard-working
tax payers support an ‘idle poor’. ‘The
rich man in his castle and the poor man at his gate’ would be making an
equal sacrifice.
Basing
taxation on a percentage of total
income may seem revolutionary but there’s nothing really original about
it. The Church at one time demanded ‘a tithe’ (one tenth, or 10 percent) of everyone’s gross income. That was quite reasonable in an age when the Church provided many of the services (education, relief of the poor and so on) that are now considered the responsibility of the State. In the public services negotiated pay increases are always a percentage of the existing salary. Thus, the Chief Executive and the junior
clerk get the same percentage salary increase though, in pounds and pence, the
former gets many times more than the latter!
Percentage
taxation isn’t going to happen overnight or even in my lifetime; probably not
in my sons’ or my grandchildren’s lifetimes either. There’s one obvious measure that could be
introduced here and now to reduce that deficit without causing hardship to
anyone. It would also, at a stroke, reduce the anomaly of the wealthy receiving
benefits that they don’t need, without the need to submit claimants to always-hated
‘means testing’.
This would be
to make all state ‘benefits’ taxable.
Our state retirement pension is added to any other income we may
have and is subject to income tax. Why
on earth should other benefits be tax-free?
Other benefits that could be made taxable include winter fuel allowance,
free tv licences, social security payments, attendance allowance (I
receive that because of my poor and deteriorating mobility), children’s allowances
and so on.
Even with our
present income tax system it would be much fairer to both poor and wealthy than
at present. Those whose total income,
even with the benefit, came to less than the threshold of the lower tax rate
would continue to pay no income tax.
They would be unaffected by benefit becoming taxable. Those of us who are better off would pay
according to our income but no one would have to pay more than the appropriate
rate on their taxable income. Income tax never resulted, nor ever can
result, in either starvation or homelessness – no-one has to pay more than he
or she can afford to pay. Of course, it would be much fairer if the threshold
for the highest rate of income tax were to be lowered or if, as I have
suggested, everyone paid income tax as a percentage of their gross income.
But that, at
present, no political party is prepared to endorse.
‘The tongue is an unruly member’
Says St James
in his New Testament Epistle. I
certainly agree with that. It has been my over-active tongue that has got me
into trouble in the past. There was the
time when I was Tendring Council’s public relations officer and I told the
Chairman of the Council that…………….. No I
won’t reveal the extent of my idiocy, and it was a long time ago! Their tongues
have brought embarrassment to people much more important than me. Only last week they did so to both the Prime
Minister and the leader of the opposition. I think that the Prime Minister really should
have known better.
On the occasion of a meeting of business men and women in New York, he was overheard remarking to a former mayor of that city that H.M. the Queen had ‘purred’ when he had phoned her with the result of the Scottish referendum, and that she had shown great relief at the fact that Scotland would not separate from the remainder of the UK. One of the reasons why the British monarchy has survived among a sea of republics is that the Sovereign, as head of state, never expresses a political opinion. She is the confidante of Prime Ministers and can advise them in the light of her much greater experience of the national scene – but the content of any conversation with her Prime Minister, of whatever political persuasion, is never revealed by her and should never be revealed by the Prime Minister.
On the occasion of a meeting of business men and women in New York, he was overheard remarking to a former mayor of that city that H.M. the Queen had ‘purred’ when he had phoned her with the result of the Scottish referendum, and that she had shown great relief at the fact that Scotland would not separate from the remainder of the UK. One of the reasons why the British monarchy has survived among a sea of republics is that the Sovereign, as head of state, never expresses a political opinion. She is the confidante of Prime Ministers and can advise them in the light of her much greater experience of the national scene – but the content of any conversation with her Prime Minister, of whatever political persuasion, is never revealed by her and should never be revealed by the Prime Minister.
It is true
that the Prime Minister’s gaffe was part of a private conversation and never
intended to become known by the general public. However, its content should
never have been revealed to anyone, certainly
not to a foreign politician.
Ed Miliband’s
tongue’s failure was one of omission rather than commission. He gave a stirring
‘leader’s speech’ to the faithful gathered together at the Labour Party’s
annual conference – the last such conference there’ll be before next year’s
general election. It was a speech all the more effective for the fact that he made it without notes.
Now I’ve done
quite a lot of public speaking (on much less important issues and to far
smaller audiences) in my time and I have always tried to speak without
notes. There’s no doubt at all that it
is the very best way to connect to, and hold, one’s audience. Sadly, on my way home I’d often think ‘that went down well but – oh dear, I forgot
to make this, that or the other point that was of particular importance’
I reckon that
Ed Miliband must have been having very similar thoughts – possibly even before
the applause had died away. If there’s
one thing that the public feel the Conservatives do better than their Labour opponents it’s managing the economy, in particular reducing that deficit – the gap between government expenditure and
government income. If there’s one issue
that accounts for UKIP’s meteoric rise in public popularity it’s their strong
opposition to overseas immigrants ‘pouring
into this country, taking our jobs and bankrupting our public services’. I think it likely that the Labour Party
has policies on both these issues – but sadly Ed Miliband, perhaps carried away
by his own rhetoric – had temporarily forgotten all about them. They didn’t get a mention!
Ed Miliband’s
error was surely much less culpable than that of David Cameron – but I think it
likely that it will do him and his party more long-term harm.