Tuesday, 2 December 2014

What could the Chancellor do to boost tax revenue?

Over on his blog, John Redwood MP asks how the Chancellor could increase the tax take. It seems HM Treasury is feeling the pinch on many fronts: income tax down, North Sea oil revenues down, corporation tax down.

The Chancellor is going to need a lot of money soon - tomorrow in fact. It's the "Autumn" statement (some people reckon it's already Winter - depends on your definition.) In his Spring budget the Chancellor increases taxes and takes your money, and in the Autumn statement he gives it all back by doing lots of spending.

So JR wants some ideas on how to increase the tax take so the Tories can bribe us all to vote for them in the Spring of next year.

This blog was pleased to help with the following suggestions...

The two obvious geese ripe for plucking are: (i) multinational corporates who are channeling profit through tax havens by transfer charging - they would not decamp if forced to pay more tax, the UK is just too lucrative for them, and (ii) rich foreigners who own property in the UK. France and Spain are already looking at doing this. Some of these foreigners would decamp, but since I don't like the way the country is being bought up piecemeal by people who looted their own countries I don't mind if they do leave. We should not be hidey-hole-of-choice for ill-gotten gains.

Note that neither suggestion involves you or me paying more tax.

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