In which I agree with Ritchie and the TUC

The TUC is calling on the government to launch a comprehensive review of the tax system to create a level playing field and ensure that effective tax rates are as close as possible to the tax rates set by government.

We certainly should revisit the tax system, yes. Check that the whole thing is on a sound basis.

Here\’s a good start to one too.

Worth pondering: would we like the basics of our tax system explored by a man with a Nobel, a Nobel he gained largely for his study of tax systems? Or by a retired accountant from Wandsworth whose major contribution in practice was to advise on how to claim tax allowances for greasepaint?

Tough choice I know:

Many multi-national companies are paying a lower rate of tax on their profits than most people pay on their income or when buying items subject to VAT,

We\’d at least like people to start from the point that no company ever bears the burden of a tax, wouldn\’t we? That it is always some combination of shareholders, customers or workers who do?

And this is easy:

The TUC is calling on the government to launch a comprehensive review of the tax system to create a level playing field and ensure that effective tax rates are as close as possible to the tax rates set by government.

Abolish all allowances and lower rates. What\’s so hard about that?

8 comments on “In which I agree with Ritchie and the TUC

  1. The TUC suggests five ways that the government could ensure a fairer tax system:

    · Introduce a comprehensive General Anti-Avoidance Principle ….
    · Take leadership …
    · Bring capital gains tax …
    · Stop staff cuts at HMRC …

    Let’s entrust our tax system to people who can’t count to 5. Or maybe Ritchie wrote the press release and number 5 was so stupid even the TUC wouldn’t print it.

  2. @ Noel Scoper: ‘Let’s entrust our tax system to people who can’t count to 5.’

    ROFLMAO, as the young people say!

  3. The actual press release is here:
    http://www.tuc.org.uk/economy/tuc-20918-f0.cfm

    The TUC actually say FOUR ways. RM has upped it to five. So it’s RM who can’t count. Noel, If the TUC had culled the fifth “way”, don’t you think RM would have restored it in his own post?

    I think the Chancellor would probably argue that he’s already doing the first two. Mind you, what Aaronson recommends as a GAAR and what the TUC want (as defined by RM, who is their adviser on tax issues) are poles apart. Same problem with point 2 – they hate the Swiss deal, but Gideon could reasonably argue that he took an international lead on this (and successfully pre-empted the EU).

    Point 3, bringing CGT into line with income tax, I think is quite sensible. And it’s been done before – by Nigel Lawson.

    But point 4 is what it’s all about really. A comprehensive tax review to protect the jobs of workers at HMRC and ideally employ lots more. This is the TUC, after all. In recommending this, they are only doing their job.

  4. @Frances

    Surely Ritchie must have cut ‘n’ pasted the press release, he didn’t retype it surely?

    So either the original press release was “five” and corrected early, or RM wrote it for the TUC and they corrected his typos.

  5. Clarify the aconym please. I’m not young!

    ROFLMAO, as the young people say!

    Could the last bit be: laugh my arse off?

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