A discussion with two friends on the back of my post about the cuts agenda brought up some interesting figures about benefit and tax fraud.
There’s nothing the Tories and right-wing media pundits like more than a good old attack on benefit fraud. Lazy good-for-nothings scamming our taxes! Get ‘em! But how big a problem is benefit fraud, and how does it compare to the rich ripping us off with offshore tax havens and the like?
Benefit fraud in 07-08 cost us around £800m out of a budget totalling £125bn. Tax evasio by the rich cost us around £18.5bn and a tax avoidance is estimated at around £100bn compared to a government budget totalling £589bn.
Tax evasion is harder to tackle, involving international negotiations, but it says a lot about your priorities. Tory plans to bail out a few thousand rich families through inheritance tax changes would cost considerably more than benefit fraud. Are they cutting public finances to help the country, or to help their wealthy mates?
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