Showing posts with label Direct and indirect taxation. Show all posts
Showing posts with label Direct and indirect taxation. Show all posts

05 November 2013

Week 45 2013

Tendring Topics………..on line

'.........and from the easy speeches that comfort cruel men'

              As far as I know G.K.Chesterton, Edwardian author and poet and creator of the Father Brown detective stories, wrote only one hymn.  In it he asks for divine deliverance from, 'Lies of tongue and pen, and from the easy speeches that comfort cruel men'.

           At the end of the political party conference season an angry blog reader wrote bitterly to me about the way various groups had been singled out and falsely demonised at one of the conferences, as responsible for  all our economic woes - the long-term unemployed, the allegedly not-so-disabled, occupiers of under-occupied social housing, people living on ‘benefit, young people neither at school nor in work, illegal immigrants, legal EU immigrants, and so on……and on. 

            More recently we’ve had another scapegoat to explain whose fault it is that it’s so difficult to make an appointment to see your family doctor, why hospital wards are understaffed and why accident and emergency patients, needing immediate attention, sometimes may have to wait for hours to get attention.  It’s nothing to do with hospitals having had to downsize their nursing and medical staff to meet government economic targets.  Of course it isn’t!  It’s all those foreigners – health tourists – who come to Britain with the sole purpose of exploiting our free National Health Service. They go home directly they’ve had expensive treatment that we have paid for with our taxes.

            An official government report claimed that the NHS is spending up to £2 billion a year on ‘foreign visitors and short-term migrants’ and £300 million of that figure is spent on ‘health tourists’.  Health Minister Jeremy Hunt said that we couldn’t afford to run an ‘international health service’ and that less than 50 percent of chargeable foreign nationals are identified.  Funny thing – like most old people I’ve spent quite a lot of time in doctors’ and hospital waiting rooms in the past year or so, and the only obvious ‘foreigners’ I’ve encountered (and have been pleased to see!) have been the foreign doctors who make up for the fact that we’re no longer training enough professionals each year for those jobs.

            Needless to say Clacton’s Europhobic and climate-change-denying MP, Mr Douglas Carswell, has leapt onto the populist bandwagon.  Having read reports in the Daily Mail and Daily Telegraph that ‘an EU study has found that 600,000 unemployed migrants are living in Britain at a cost of £1.5 billion to the NHS alone’, he claimed that ‘a wave of benefit migrants….a tsunami of economic refugees’ are causing a huge burden on the NHS.

            None of the allegations are true.  Evidence from the London School of Tropical Medicine and the University of York, quoting research commissioned by  the government itself, showed that, contrary to Jeremy Hunt’s claims, twice as many foreign visitors pay to use the NHS as exploit free health care and that the UK is a net exporter of patients seeking treatment.    Jonathan Portes of the National Institute of Social and Economic Research claims that evidence shows that EU migrants, like migrants in general, on average pay in more than they take out.

            You’d never dream, from the allegations of the Health Minister and a sycophantic press that British visitors to mainland Europe (health tourists?)  enjoy exactly the same privileges when visiting other EU countries as other EU citizens enjoy in Britain.  During the past seven years I have visited mainland Europe on nine or ten occasions, staying for several days in Belgium and in Germany and visiting five other countries that are members of the EU, and one non-EU country. Always in my wallet I have carried my small plastic European Health Insurance Card (they’re free, and you can get an application form for one from any post office) that throughout the EU entitles me to exactly the same medical treatment as any citizen of the country I am in.

            I am fortunate in that I have never needed to use that card, but its possession has allowed me to visit countries in mainland Europe without taking out the very expensive (at my age!) health insurance that would be prudent if I were visiting the USA or any other Non-EU country.  Nor should it be assumed that health provision in other European countries is necessarily inferior to that in our own.  My grandson Nick,  founder and Managing Director of an international tourism publicity consultancy, spends a great deal of time in Brussels.  He has used the Belgian health service on a number of occasions and he tells me that, although different, it is in no way inferior to ours.

            Access to the whole of Europe’s health services is, of course, one of the privileges we would automatically lose if, in any future referendum, a majority of us were stupid enough to vote to leave the European Union.

‘Fair’s Fair!’ – but what is ‘Fair’?

          I never for one moment imagined that in any confrontation between our elected Members of Parliament and representatives of the energy suppliers I would find myself agreeing with an argument of the energy suppliers.  I do believe though that one of their contentions – that the cost of the government’s ‘green energy’ measures should be drawn from general taxation, rather than from the fuel bills of energy users – is wise and reasonable.

            I would however urge that it should be funded from income tax rather than from VAT and customs duties on alcohol, tobacco, petrol and the like. VAT, customs duties and fuel bill add-ons are ‘indirect taxes’ which take no account of ability to pay.  The multi-millionaire filling the tank of his Rolls Royce (or getting his chauffeur to do it!) pays exactly the same price and the same amount of tax for his petrol as the agricultural labourer filling that of his battered second-hand Ford.  Obviously that tax is a far greater proportion of the farm labourer’s income than is that of the multi-millionaire.  Income tax is a ‘direct tax’ that does something to restore that balance – and could do much more if the tax was really calculated as a fixed proportion of every adult’s income.

            There are clearly two opposing views of what is and what is not ‘fair’.  The Chancellor and his supporters consider that it is ‘fair’ for everyone, rich and poor alike to pay more-or-less the same amount towards the provision of services for the whole community such as the NHS, Social Security, policing, refuse collection and so on.  Indirect taxes help to secure this. ‘The rich man in his castle’ pays in VAT exactly the same amount as ‘the poor man at his gate’ for his purchase of goods or services, or in excise duty when he fills his car or buys himself ‘a pint or a wee dram’.  Thus the  chancellor and those who agree with him are able to claim with absolute sincerity that the tax system is fair and that ‘we are all in this together’.

            I believe that our contribution towards services that benefit the whole community should not be regarded as an imposition, but paid with patriotic pride as our annual fee for the privilege of  British citizenship.  This annual payment, the equivalent of today's 'income tax', should be levied on every British adult, rich or poor as a percentage of his or her gross annual income (before any of it can be diverted to 'charitable trusts' or off-shore tax havens!)   The percentage required would be calculated annually.  I can only guess what it would be but I’d be surprised if would be much in excess of 25 percent.   Only thus would we become a ‘fair’ community in which every paid-up citizen had a financial stake. Then we would truly be able to say that, We’re all in this together!’

The Great Storm!

            A remarkable feature of the storm that lashed southern and central England on Monday morning 28th October was the accuracy with which it had been forecast by the Meteorological Office.  For almost a week we had been told of its approach, the time of its arrival and its predicted path across the southern half of our country.  We were advised about the amount of damage likely to be sustained, the possibility of local flooding,  trees being uprooted, structural damage and interruption of electricity supplies, road traffic and rail services.  The forecasts were correct in every respect. Possibly because of that, only four deaths attributable to the storm were reported nationally. In Clacton-on-Sea trees were uprooted and there was some structural damage to property but – as usually happens – we suffered rather less than most of southern England.          

The Helter-Skelter – before the storm.

The most spectacular – and nationally reported – damage that we sustained was to Clacton Pier where the Helter Skelter was blown over and severely damaged.  Once before, in 1956, a similar storm had uprooted trees, damaged buildings, blown the Helter Skelter into the sea and sunk pleasure boats moored off the beach.  I remember it particularly because at that time the Council’s public health inspectors, of whom I was one, were responsible for recording and reporting details of each day’s weather to the Met. Office – and preparing a brief local weather forecast to be displayed early each morning on a notice board near Pier Gap  and the memorial garden. Any member of the public sufficiently determined and physically strong enough to struggle against the howling gale to the notice board on that particular morning would have read ‘Sunny intervals, risk of rain at times, breezy’

           



             

           

           

























29 February 2012

Week 9 2012 1.3.2012

Tendring Topics........on Line


The Cost of Weddings ………

            One of the biggest changes in public attitudes that have taken place during my lifetime is that relating to love and marriage.  In my childhood and youth the idea of an unmarried couple living together as man and wife evoked shock and horror.  It was ‘living in sin’.  The woman in such a liaison was regarded as ‘fallen’, any children were ‘illegitimate,’ a designation that could prove to be a lifelong disadvantage. As late at the early 1950s a popular song announced that, ‘Love and marriage, love and marriage, They go together like a horse and carriage.  You can’t have one without the other’.  Well, that was certainly what I - and many thousands like me – took for granted.

            How different things are in the twenty-first century.   It is considered perfectly normal – even wise – for a young couple to live together, and perhaps have one or two children before getting married or, in many cases, deciding not to marry at all.   Sometimes they’ll say that they are ‘saving up to get married’ by which they usually mean saving up to be able to afford the kind of lavish wedding reception and honeymoon that will be the envy of their friends, neighbours and work colleagues.

            Recently I was quite shocked to discover that many couples may have to ‘save up’ to pay for the actual ceremony. It was something with which I had never been involved.  Traditionally it is the bride’s parents who pay for the wedding, though that too seems to have changed nowadays. Heather and I were married in the Methodist Church of which she was a member with a (teetotal!) wedding reception in the church hall.  One of my sons was married in a Roman Catholic Church and the other in a Registry Office.  Obviously there was a charge for the Registry Office but it didn’t even occur to me that there would be a charge for the actual wedding in a church – except for the services of the organist and, if there was one, the choir.  I thought it was just ‘a service’ like any other service at which the priest or minister officiated.  I have also been peripherally involved in several Quaker weddings – and for them there is definitely no charge.

            I now learn that there has been a charge of £262 for a Church of England wedding and that this has recently been raised to £400.  That is quite a lot of money to a great many people today; quite enough to make an impecunious young couple who had been thinking of ‘tying the knot’ think again.  They may be facing a lot of other expenses including furnishing a home!

            I would never have expected the Church to deter couples from the sacrament of marriage and am not surprised at the fact that at least some members of the clergy are rebelling against this latest charge.  One such is Fr. Richard Tilbrook of St Barnabas’ Church, Colchester.  He intends to stick to the former fee of £262.   He is reported as saying, ‘In this economic climate in poor parishes this is a huge increase which is not acceptable.  We work very hard to encourage people to come to church and to get married in church and I worry that this will turn people away.          Fr. Richard has the support of Colchester’s recently knighted MP Sir Bob Russell who has promised to raise the matter in parliament.

…….and of Funerals

            Charges for Church of England funerals have also been increased to £160, not quite so much, but quite enough to add worry to a great many hard up new widows and widowers faced with the other inevitable funeral costs.

            Oddly enough, I have had some direct experience here.   It must have been about twelve years ago that an occasional attender at our Clacton Quaker Meeting who, like me, had been a POW in Germany during Word War II, asked me if I would officiate at his funeral service when the time came.  No – he didn’t want a Quaker funeral, but he would like me to take it.  I didn’t feel that it was the kind of request that I could refuse, though I didn’t take my promise all that seriously.  There was no certainty that he would predecease me – and in any case, it would be his relatives who would decide on the form that the funeral would take.

            However, eighteen months later I had a phone call from a local funeral director. He had died and his desire that I should officiate at the funeral had been included in the will.  I was given the name and address of his son and daughter-in-law, and I went to see them.  Yes, they would like me to officiate at the cremation.  No, they didn’t want a Quaker funeral.  They didn’t want long Quaker silences.  No, none of the relatives wanted to speak at the funeral, though they were happy enough to tell me all about the deceased. No, they didn’t want any hymns.   

            A crematorium funeral service lasts only 20 minutes but that can seem quite a long while when it has to be filled with talk and prayer!  I managed it, including a reading of the 23rd Psalm and Tennyson’s Crossing the Bar, in which the poet compares dying with passing through the turbulent water at a harbour’s outlet. I pressed the button that brings curtains round the bier as I asked for a blessing on us all at the end of the service.  My ordeal was over and the relatives were pleased.

            They were even more pleased when I waived the £80 that the Funeral Director told me was ‘the usual fee’.  £80 for twenty minutes work, perhaps an hour and a half in all if my preparation was taken into consideration!   Still pretty good payment – but I wouldn’t have accepted any payment.  Quite apart from the fact that to do so would have been considered unquakerly, I felt that I had simply been fulfilling a promise made to a former comrade; a straightforward not-all-that-difficult task dictated by friendship.

            If the ceremony had taken place in a church that had to be maintained, kept clean at all times, and warm when required, it would, I suppose, have been reasonable to make a small charge for the use of the premises, but £160? – hardly.  Once again Fr Richard Tillbrook of Colchester’s St Barnabas’ Church is sticking to the old fee of £105 for a funeral – and I think that he is right.

             Unjustifiable charges play into the hands of the National Secular Society and others who would like to separate religion from every aspect of what they regard as ‘real life’.

 Some thoughts on Taxation

          Did you notice the story last week about Civil Servants whose salary was being paid into a limited company to reduce their tax liability?  There was a tremendous fuss about whether or not they really were civil servants – or were they just contractors to the civil service. 

            Whether or not they were civil servants is surely beside the point.  What was to the point was that due to a loop-hole (one of many I fear) in the law, the Inland Revenue was deprived of tax to which it would otherwise have been entitled and which the rest of us will now have to pay.  The exact employment status of those concerned should not have mattered in the least.

            It is tax loop-holes of this kind that the government needs to seek out and close with at least the same vigour and enthusiasm that it seeks out Benefit Scroungers,  if it is to persuade even the most gullible that ‘we’re all in this together’.

            Then there was the promise last week by the opposition  that, if they were elected, they would take those with the lowest incomes out of the income tax system altogether because it had been found that extra money in the pockets of those with the lowest incomes tends to be spent, thereby helping Britain’s economic recovery.  Extra money in the pockets of better off people tends to be saved – however wise that may be personally it isn’t going to speed national recovery.

            I understand that argument but, though raising the level of income tax liability would certainly be to my advantage, I don’t think that it is the right way to achieve that objective.  I believe that we need to reverse the transfer of direct taxation (income tax, death duties, national insurance and so on) to indirect taxation such as VAT and customs duties on alcohol, petrol and diesel fuel.  This was initiated during the governments (I nearly said the reign!) of Mrs Thatcher and continued enthusiastically during those of Tony Blair.

            VAT is paid by rich and poor alike (‘we are all in this together’) but it is a much larger proportion of the total income of the poor.  Its imposition and removal therefore affects the poor more than the rich.   Reducing the cost of goods by cutting VAT would make it possible for the poor to buy goods that would otherwise have been beyond their reach – and help economic recovery.

            I have personally had an example of that during the past few weeks.  I have recently self-published part of my autobiography as a 65 x A5 page booklet entitled ‘Zittau….and I’, relating to my association with that small German town both during World War II and more recently.  I had 250 copies printed to give to friends, family and anyone who may be interested.  Printing work of this kind is not subject to VAT – so I was able, within my means, to have the work done and thus help keep the printing firm functioning.  Had the work been subject to VAT I couldn’t have afforded it, and probably many of the firm’s other customers wouldn’t have been able to either.

            As for income tax – well, it is the one tax that could be levied on all of us according to our ability to pay it.  Properly graded, so that we all paid a similar proportion of our incomes, it could make sure that we really were all in this together.
           
I believe that even the poorest should pay a small amount in income tax.  They too could then claim to be tax payers and free themselves of the jibe that others have to pay for public services that they enjoy.  Those – like me – who are a little better off should pay a larger amount but the same proportion of our income in taxation and so on, with the very wealthy paying a much larger amount, but the same proportion of their incomes.  It seems blindingly obvious to me that that is the path towards fairness and the creation of a true Common Wealth.

            I should add that I don’t think that there is the least possibility of the present, or any currently-possible alternative government, pursuing that path in the foreseeable future!

Provoking ‘The Wrath of God’

          It is becoming more and more certain that NATO’s adventure in Afghanistan will end in the same way as the two British incursions into that country in the 19th century and the Soviet one in the 20th century - in humiliating departure.  I have little doubt that within months of the final withdrawal of our forces, Afghanistan will be ruled by an extreme Islamist clique, its schools (except of course those indoctrinating boys in the most extreme Muslim traditions) will be closed and its women and girls again reduced to the status of ‘goods and chattels’. There will have been a massacre of those Afghans who co-operated with the ‘Western Infidels’ and were foolish enough to imagine that we would protect them.

            This opinion has been reinforced by recent events.  A population that supported, or meekly endured without protest, the outrages of the Taliban was raised to hysterical fury by the accidental burning of some copies of the Koran by American troops.  There have been days of frenzied rioting and hate-demonstrations against NATO and ‘western values’ generally, culminating in the murder of top American Army Officers in what should have been the most secure compound in the most secure city in Afghanistan.  The murders are believed to have been committed by interpreters or other Afghans trusted as being ‘on our side’.  We may succeed in training Afghans in the use of modern weapons and in the skills of modern warfare – but we can’t dictate against whom those skills and weapons will be used!

            How extraordinary that all the violence and killing has been done in the name of God.  The God in whom I believe knows very well that books, however significant and sacred may be the words that they contain, are made by human hands and, when destroyed, can easily be replaced with identical copies.  Every single one of our fellow humans, on the other hand, is (as our Quaker Advices and Queries assert) unique and a child of God, created by God in his own image and irreplaceable.  My God, learning that sacred books dedicated to his worship and service had been destroyed, would metaphorically shrug his shoulders and say, ‘My servants will make many more to replace them’.  I believe though that nothing would be more likely to arouse his anger than learning that someone had killed even a single fellow human, one of his children, and had claimed to have done so in his name