Tag: tax

Every time I hear someone say “nobody likes paying taxes”, I want to shout: I do! My taxes pay for a civilised society, for schools and roads we all need, and for support to those who face hard times. Tax dodgers aren’t just depriving the public purse, they are also shirking their moral duty. Read More We should take pride in paying our taxes

Jim Gleeson has an interesting blog entry about the consequences of making a city more liveable. In short, there is a danger that making an area more liveable can price out lower income people. By reducing air pollution and generally improving the local environment in more deprived areas,  richer people will start to move in displacing the people who should have benefitted. His prescription is more housing supply to accompany environmental improvements. But we need to think a bit more carefully about this to get the medicine right for places like London. As he points out, the economic benefits of making an area more desirable will largely go to existing home owners and landlords as the value of the land, and therefore the rent they can charge, increases. Lower income people will be forced to move, presumably (according to Jim’s argument) to less liveable areas. Council and housing association tenants…

Read More Green doesn’t need to mean gentrification

The chart below shows a breakdown of where my monthly gross income goes. I’m earning in the region of £30k/year, above the London average but not exactly an enormous sum. One of my favourite adages is that British people want Scandinavian public services with American tax levels.  Raising taxes to tackle the deficit is treated as something approaching political suicide. But do we pay all that much in tax? Put aside the fact that at 36% of the UK’s GDP, the current tax level is lower than under Margaret Thatcher (when it dipped to 40%) and much lower than the Swedish level of around 50%. How does tax affect me? Well my income tax and council tax, which pay for all the basic public services, the roads, waste collection, public transport investment, welfare for people in harder circumstances and much more account for less than my rent, which pays for…

Read More Why so concerned about tax?

I came across a shocking statistic today: environmental taxes are decreasing in the UK! The total revenue has risen slower than inflation between 1999 and 2008; from around £32.6bn in 1999 to £38.5bn in 2008. If it had grown with inflation over that period it would have stood at £41.4bn in 2008. As a percentage of GDP over that period it fell from 3.5% to 2.7%. As a percentage of the total taxes and social contributions in the UK, it has also fallen behind. In 99 it peaked at 9.7% of total tax revenue, then fell to 7.2% in 2008. Environmental taxes made up a lower share of our economy and tax revenue than at any time since 1993, when the ONS records begin. So much for shifting the tax burden from income to environmental damage!

Read More Eco taxes going down in the UK!

If you read beyond the squeals of indignation from the latest TaxPayers Alliance “research” you find an interesting conclusion. The taxes we pay on measures aimed principally at reducing carbon dioxide emissions are much lower than the cost of those emissions to the economy. So we should be putting more tax on carbon dioxide, and perhaps less on good stuff like work! The TPA, better known for their corporate tax avoidance and personal tax evasion than robust research, have really gone to town on environmental taxation. So here are two fatal flaws and an interesting conclusion for those worried by the headlines. First, they pit these taxes against the cost of carbon dioxide emissions. But by their own, buried and obfuscated admission, these taxes do a lot more than just reduce carbon dioxide emissions. Fuel and vehicle excise duty, which make up the bulk of the taxes, also address congestion,…

Read More TaxPayers Alliance accidentally show we need more eco-taxes

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…

Read More Who is really ripping us off?

As long as the Democrats talked within Republican frames like “tax relief”, they always lost the argument. So why are Labour taking on Tory economic narratives during their party season? They’re handing the election to Cameron on a plate. The first narrative is that we need to cut public expenditure to save the deficit and curb the national debt. Except that our national debt is much lower than most developed economies, and is projected to stay that way. Our deficit is large, but Cameron’s criticism of any fiscal stimulus would only have landed us in a bigger hole with more unemployment and smaller tax receipts; perhaps even a depression. The second is that the public sector is an unproductive drag on the economy, and should be the focus of cuts. Except that the public sector injects stable spending power into the economy; provides the infrastructure and services that business can’t…

Read More Don’t let the Tories get away with it