The bit that’s getting missed – tax evasion makes people richer

The action of these suppliers has been criminal.

Amazon’s failure to address it until compelled to do so has been negligent.

But HMRC and the Treasury’s failure to act for so long when this was known has been incomprehensible. Billions of tax revenue has been lost and an untold number of UK based businesses have been harmed.

Tax evasion is not a victimless crime.

It also has benefits.

No, really, Consumers have, by the evasion of these taxes, had cheaper goods. Now, we can insist that this isn’t enough to make up for the other damages. We can, equally, insist that it is. But we do actually have to acknowledge that there’s a good part as well as a bad here.

Britons not paying VAT on imports has made those Britons richer by the amount of VAT they’ve not had to pay. Again, you can think that not worth it but it is still true.

15 thoughts on “The bit that’s getting missed – tax evasion makes people richer”

  1. Our first action outside the ESpew should be the instant abolition of VAT.

    Do us a power of good that would.

  2. Btw I agree with ecks that vat should be abolished. It’s an administrative nightmare and frankly impossible to get it right.

  3. Now, we can insist that this isn’t enough to make up for the other damages. We can, equally, insist that it is. But we do actually have to acknowledge that there’s a good part as well as a bad here.

    Explain to me the bad part?

    On the basis that money is spent far less efficiently (creates less value) in the public sector than in the private sector (and yes, on average, we really do *know* that), then – at the % levels of GDP currently managed by the state – anything which has the effect of reducing that % will have a positive effect? Am I missing something?

    And separate from public / private in theory, but of course they are implicitly lnked: diversity officers (or any of a hundred other pointless public sector job descriptions) being reassigned to cleaning / gardening / building / making stuff – doesn’t all of that create more value for our society?

    My complaint against tax evasion (and I mean evasion, not Muff’s bollocks) would be that the gains from evasion are made by those who are being criminal. Better for all to enjoy the benefits legally.

  4. If you believe in MMT then it really is a victimless crime. There’s no inflation, so really what’s the fucking problem?

  5. Right, get rid of VAT. Then what do you cut?
    How much is VAT in the national budget? £120 billion or so?
    What do you want to cut or who do you want to add the tax on to?

  6. Martin,

    I wouldn’t get rid of VAT (though it could be massively simplified), there are far better targets, like stamp duty and lots more.

    I would get rid of large swathes of people doing stuff that either doesn’t need doing or that the private sector could do more effectively. ie let people spend their own money rather than have the state take it to piss down the toilet “on their behalf”.

    Redistribution is fine, but the state doesn’t have to manage the process as well – simply pass some money from those that can afford to those that can’t.

    Diversity officers and a hundred other pointless public sector roles – they are not required and add no value. In fact, they liaise with and take up the time of other people who are trying to add value, hence these people are “value destroyers”.

    Here’s another example. How much of the Dept of Education could be scrapped? A voucher system run by a few accounting clerks, to dish out vouchers to parents with kids. Any school can acept them as cash (and get the money back from the state). Hence, you can now dismiss much of the CM education establishment / bureaucracy that currently does such serious damage to the education of today’s kids.

    Keep a few (but different ones, ie normal people?) for routine checks to make sure schools aren’t fronts for extremism (etc).

    I could go on all day, across swathes of the public sector in the same vein, but you get the point?

    Whenever someone asks what would you cut, they are often thinking that it’s a killer question because the answer must be too difficult. It’s not, it’s very easy, but there is no political will, because they are all part of the same “team”.

    And I would increase the defence budget – 1st duty of a nation state – but (obviously) change the team responsible for procurement.

    I should be doing more useful stuff on a Saturday afternoon!

  7. @PF, June 16, 2018 at 4:49 pm

    +1 Also, abolish DFID & forgein aid; abolish Gift-Aid & low/no business rates too.

  8. Martin–a piss poor 120 bill in cuts? Like falling off a log.

    Start with foreign aid altogether save for emergency disaster funds. And that to be increasingly tied to what the country in question does. Sending money to a socialistic Den of Thieves is a bad idea as Haiti shows. Why should we sub countries whose leftscum leaders put billions in Swiss bank accounts and have fuckall left to help their own folk?

    Cancel the Toy Train set ie HS2 and Part 2 of Crossrail. Smash all quangos/NGOs/ close the BBC+C4/ fire the SCS sans compo and expensive pensions./ cease all war fighting activity and return our forces home ( some of the cash saved would be used for a build of the Forces).

    The list just goes on and on. Getting the UK’s 700 billion govt spent wasteful shitshow down to 400 billion tops would be stage one. That is enough to pay for NHS/ Benefits/ Education that most folk don’t yet see thro’.

  9. Mr Ecks – what war fighting activity do we currently do?
    Build up the forces – for what? War fighting?

  10. Martin,

    Build up the forces – for what? War fighting?

    Could one suggest that the Defence budget is for “defence”? To protect the nation from its enemies? In whatever form they take given the age we are in?

    Tone had a different view – so called “progressive interventionism”, because he thought people would then think he was strong like Thatcher…

  11. @Mr Ecks, June 17, 2018 at 8:34 am


    Also, allow private infrastructure spending: additional runway(s) at all airports if they want. Private sector wants to build for profit, let them. Gov’t “pet projects” are self-agrandising waste. Cross Rail 2? Allow private sector to do how they want, if they want.

    HS2 is a monumental EU mandated disaster. We’re leaving, scrap it & write of the 1Bn sunk costs rather than waste >£100Bn on a negative cost-benefit folly.

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