Errors Of Judgement

The hoo ha over Jimmy Carr’s offshore tax minimising arrangements and his subsequent “error of judgement” contrition statement earlier today now firmly puts the tax system under the spotlight once again if only momentarily.

What conclusions can we draw from this media driven exercise of pass-the-parcel of hypocrisy? Blindingly obvious ones include:

The well off frequently have greater access to clever accountants and associated creative accounting.

That ‘the system’ allows these tax loopholes and there hasn’t been the political will to close them (money=power and influence plus some politicians may even exploit them?).

That, on the whole, people dislike paying tax in Britain even if they also want  good public services funded by them. It’s a something for nothing culture at every level (too harsh?).

Would Joe public be placated / easily bought if they/we all had access to creative accounting whether self employed or an employee (many would love all employees to be self employed). Is the argument really that we lose vast amounts of tax revenue to such clever accounting or is it more that some of us are not all ‘in it together’ tax burden wise? If we all had access to creative accountants with the ability to offset our tax for work related expenses would the arguments over lost revue evaporate (A kind of sod public services anyway point of view).

That these loopholes give the impression that paying taxes and therefore contributing to society is for the plebs below a certain earning/talent/status level.

Or that people of means resent the tax system as they see themselves as largely self made, hard working and resent their money being used for things they don’t agree with (See singer Adele’s past remarks over her resentment to paying tax that funds Buses she never uses).

That enough people are inherently greedy.We all want more.That’s human nature.

That we don’t like to talk about what we earn though we may have a nagging suspicion that many others may may not deserve what they earn (when we are inevitably undervalued and short changed).

That we do like to carp about people who seemingly earn more money than us.

That almost nobody is advancing the argument that in a civil society taxes are a good and that if we want good public services we should be prepared to pay for them (a tax system without inequalities and holes being a necessary partner to this).

That the resentment over paying tax boils down to feeling powerless about what our taxes are spent on.

The typo gremlin strikes at the BBC reporting of the story

And finally that The Prime Minister, David Cameron may have opened a can of worms with this particular topic that may resonate awkwardly in the same way as John Major’s back to basics morality sound bite focused on the morality of many in his own cabinet. He’s fired the starting pistol for the microscope to be waved over anybody in the public eye. The question is will anything change due to current faux outrage by the media. Or will we forget it all much like the revelations over MP expenses?

Image by Stimpdawg under this creative commons licence

Netherlands Considering Pay-Per-K Motoring

nocars

The Netherlands government are getting serious about abolishing road tax and a current 25% sales tax on cars and replacing them with a per kilometer fee in an effort to cut car congestion and carbon dioxide emissions.

If the law is passed then it would come into effect in 2012 for Netherlands drivers and implemented for foreign motorists in 2018.

The proposed system would rely on each car being fitted with a GPS device that would send data regarding distances travelled to an appropriate revenue collection agency.

Initially a charge of 3 Euro cents per kilometer would be charged rising to 6.7 Euro cents by 2018.

If successfully introduced then the rest of Europe will be watching closely as to how effective a measure it is in achieving its stated objectives.

Photo lbsterling under this creative commons license

Minimum Reform Worries Retail

“It is wrong to expect retailers to bail out the Government’s incoherent tax policies, and we will strongly oppose any move to do so.”

James Lowman, head of the Association of Convenience Stores (ACS) worries that low paid workers in retail will may claw back their losses if the government chooses to reform the minimum wage as a way of making up for the abolition of the 10p tax rate.

There are already plenty of part time and full time workers who need to rely on additional state benefits in order to top up their low wage packets and the rates are already due to increase in October. The hourly rate for 18 to 21-year-olds will increase from £4.60 to £4.77, while the statutory wage for 16 and 17-year-olds will go up from £3.40 to £3.53. The rate for those ages 22 and over will increase by 21p to £5.73 per hour.

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Sarkozy: Tax The Internet To Save TV

SarkozyFrance’s President Sarkozy has been unveiling a rage of policies as part of what he grandly calls his ‘policy of civilisation’. He said: “we consider the total suppression of advertising on public channels”, seen as vital to improving the quality of programming currently dominated by game shows and reality television and declining viewer numbers. This would be funded by: “an infinitesimal sales tax on new communication methods, like Internet access and mobile telephony.”

A  levy of around an extra 1 euro per month for Internet and mobile users is the likely outcome in France if the proposal is enacted.In addition a levy would be placed on the advertising revenues of France’s private commercial broadcasters. Sarkozy promised a “cultural revolution in public service television.”

Sarkozy recently announced also that funding would be withdrawn for France-24 the English language  24 hour TV news service.

Critics would likely say that Sarkozy would be using the popularity of the new media to prop up the decline of the old and that a reduction or elimination of advertising is not always a guarantee that programme quality will automatically improve or that viewer numbers will increase.

Photo by by Fr@nçois under this creative commons license

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Car Park Tax Is Coming

car park

Watch This Space
I read that the go ahead has been given to tax employee car parking spaces. any company with 10 or more dedicated parking spaces may find the spaces taxed in an apparent attempt to discourage car usage. Car parking spaces may cost £350 a year, a cost likely to be born by the employee though it will be the company that is taxed. Car parking spaces look like becoming another tax point or lucrative investment.

Rent Out Your Car Parking Space 
If you live in London  or other in demand location and have a car space outside your house but don’t own a car it’s likely that you could rent the space out for up to £250 a year. We live near an airport so would be happy to rent our space out for those wishing to park reasonably close to the airport and who don’t wish to pay heaven knows what a day(that is when it’s not being nicked by the oh-so-caring-for-the-environment-but-stuff-other-people Mr Prius owning man who thinks nothing of dumping his hybrid car on our drive for 2 week stretches when he jets off abroad) Though I probably always underestimate the amount of people in this country with more than enough money to get by. Divisive times.

Car parking tax source

Rent out your car parking space

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