If Osborne is opposed to tax avoidance, why did he reward it?

The Chancellor says he's "shocked" by tax avoidance. So why did he cut the 50p rate?

George Osborne's claim that he is "shocked" by the level of tax avoidance in the UK is evidence of either extreme naïveté or extreme cynicism. Are we really to believe that it was only after studying millionaires' tax returns that the Chancellor realised that some of them pay "virtually no" income tax? And does he really think the voters will believe him? 

He told the Daily Telegraph

I was shocked to see that some of the very wealthiest people in the country have organised their tax affairs, and to be fair it’s within the tax laws, so that they were regularly paying virtually no income tax. And I don’t think that’s right.

Admirable words, but if Osborne is opposed to tax avoidance, which he has described as "morally repugnant", why did his Budget reward it? The principal reason for the abolition of the 50p tax rate was that high-earners are avoiding it. As Osborne stated in the Budget

HMRC find that an astonishing £16 billion of income was deliberately shifted [emphasis mine] into the previous tax year - at a cost to the taxpayer of £1 billion, something that the previous Government's figures made no allowance for.

But this is an argument for reducing tax avoidance, not for cutting taxes for the top one per cent. While the rich could avoid the 50p rate in the first year of its existence [by bringing forward income from 2010/11 to 2009/10 in order to pay the 40p rate], this is not a trick they could have repeated. Yet Osborne has cut the rate all the same. It is as if he has rewarded welfare cheats by increasing their benefits.

Osborne's insistence, then, that he is "going after" tax avoiders is simply an attempt to change the subject. If the Chancellor really wants to ensure the rich pay their fair share, he should reinstate the 50p rate. 

Chancellor George Osborne: "shocked" by tax avoidance? Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Michelle Obama's powerful speech demolishes Donald Trump without even mentioning his name

This is one speech he won't be able to steal. 

After her stirring speech at the Democratic Convention, Michelle Obama can be sure of one thing - Melania Trump won't be able to copy it.

Obama, like her husband, is a fine orator, so much so that the wife of Republican nominee Donald Trump was widely suspected of borrowing from her speeches.

But those who crowded into the audience on Monday night could be sure of the real deal. 

Obama did not mention Trump by name, but in an implicit criticism of him, she spoke passionately about the responsibilities of the Presidency, and how the United States had moved on since the days of slavery and oppression. 

The Obamas knew their kids were watching them, she said: "We know that our words and actions matter." 

And in a reference to Trump's Twitter obsession, she declared: The issues a President faces "cannot be boiled down to 140 characters".

Obama, whose husband fought a fierce campaign against Hillary Clinton to clinch the Democratic nomination in 2008, now heaped praise on his former rival. 

Clinton was a "true public servant" who "did not pack up and go home" after losing to Obama in 2008, she said. She had carried out "relentless, thankless work" to actually make a difference in children's lives. 

And she reminded the audience the Presidential election was not just about left-right politics: "It is about who will have the power to shape our children for the next four or eight years of their lives."

But the African-American First Lady's most powerful statements were a reflection on race, gender and social mobility - issues far outside of Trump territory. 

In a reference to Clinton's 2008 concession speech, where she talked of making "cracks in the glass ceiling", Obama declared: 

"That is the story of this country, the story that has brought me to this stage tonight, the story of generations of people who felt the lash of bondage, the shame of servitude, the sting of segregation, but who kept on striving and hoping and doing what needed to be done so that today I wake up every morning in a house that was built by slaves.

"And I watch my daughters, two beautiful, intelligent, black young women playing with their dogs on the White House lawn.

"And because of Hillary Clinton, my daughters and all our sons and daughters now take for granted that a woman can be president of the United States."

She also recalled the little black boy who made headlines around the world when he visited the White House and asked the President: "Is my hair like yours?"

Obama's calm but intense delivery brought the packed arena to its feet, and earned her several standing ovations. Bill Clinton, former President and husband of Hillary, was seen to say "wow" from his place in the audience.

She ended with a final dig at Trump's slogan "Make America Great Again". Obama told the crowd:

"Don’t let anyone ever tell you that this country isn’t great, that somehow we need to make it great again. 

"Because this right now is the greatest country on earth."

Michelle Obama's speech: The best quotes

On Obama's 2008 victory

I will never forget that winter morning as I watched our girls, just 7 and 10 years old, pile into those black SUVs with all those big men with guns.

And I saw their little faces pressed up against the window, and the only thing I could think was, what have we done?

On bringing up kids

We insist that the hateful language they hear from public figures on TV does not represent the true spirit of this country.

How we explain that when someone is cruel or acts like a bully, you don’t stoop to their level. No, our motto is, when they go low, we go high.

On Hillary Clinton

What I admire most about Hillary is that she never buckles under pressure. She never takes the easy way out. And Hillary Clinton has never quit on anything in her life.

On who shouldn't be President

When you have the nuclear codes at your fingertips and the military in your command, you can’t make snap decisions. You can’t have a thin skin or a tendency to lash out. You need to be steady and measured and well-informed.

On equality

I wake up every morning in a house that was built by slaves. And I watch my daughters, two beautiful, intelligent, black young women playing with their dogs on the White House lawn.

And because of Hillary Clinton, my daughters and all our sons and daughters now take for granted that a woman can be president of the United States.

On the US

Don’t let anyone ever tell you that this country isn’t great, that somehow we need to make it great again. Because this right now is the greatest country on earth.

You can read a copy of the full speech here.