Mr Murphy warned that the City’s power dated back to William the Conqueror and the Domesday Book.
“In 1066, William the Conqueror turns up on British shores, marches to London, declares himself the victor and makes peace with the City of London and asks for a loan,” he said. “He gets it, writes the Domesday book as his tax base and then goes out to recover the money through taxation to repay the City.
“That’s been the basis of power since 1066. Coming on for a thousand years, we’ve had this organisation holding this power over the government. There is quite literally a state within the state in the UK. We have a lord mayor for the City of London who has the ranking of a cabinet minister for international diplomacy purposes . . . [and an area] where the sovereign cannot go without permission.”
He’s swallowed all that guff that Nick Shaxson got wrong then.
He said that there should be tougher criminal penalties for bankers who were caught breaking the rules, adding that as much as £20 billion could be raised from a transaction tax on high-frequency trading.
And as I’ve been pointing out all along, an FTT would lose revenue, not collect it.
He said that the idea of a wealth tax had been made possible in the past five years by new tax transparency rules making it hard for UK citizens to hide their assets.
At least the first £1 million of someone’s wealth should be discounted from the tax, as well as pension pots, he said.
“Do I think it’s desirable? Yes, I do. “[A wealth tax] has to be 1 per cent or less . . . I wouldn’t necessarily exclude private companies and private shares. I don’t see why companies don’t become of public concern.”
And he’s obviously not caught up with optimal tax theory as yet…..
Mr Murphy said that threats by the very wealthy to leave the country to avoid taxes they did not like never materialised.
The brain drain never happened. Both Mick Jagger and Lewis Hamilton are still UK resident for tax purposes.
Despite his intellectual support for Mr Corbyn, Mr Murphy said that he would not sign up to back him in the leadership contest,
Well of course not. That would imperil his grant money, wouldn’t it?