Will Cameron U-turn on charity tax relief?

The PM looks increasingly certain to revise Osborne's plan to cap tax relief on charitable donations

Three weeks on from the Budget, David Cameron could be forgiven for hoping that the political strife was over. But even 8,000 miles away in Asia [the PM flew from Indonesia to Malaysia earlier this morning], Cameron can't escape the aftershocks of George Osborne's statement. The outcry over the Chancellor's decision to impose a cap of £50,000 on tax relief for charitable donors is reaching a crescendo and Cameron has already hinted at a U-turn. Speaking in Jakarta yesterday, he said:

George Osborne said in the budget very carefully we would look at the effect on charitable donations because we want to encourage charitable giving... We'll look very sympathetically at these concerns

He has every reason to be sympathetic. A move intended to limit tax avoidance could end up strangling the PM's cherished "big society". A survey by the Charities Aid Foundation shows that nine out of 10 charities fear the plans will result in a drop in donations. The foundation's John Low speaks of "widespread alarm and despair" among charities. 88 per cent of the 120 charity executives surveyed believe that the cap will have a "negative impact on the value of donations" from major donors, while 56 per cent fear donations will fall by some 20 per cent.

In addition, there is pressure from Fleet Street and a significant number of Tory MPs to think again. Mark Pritchard, the secretary of the backbench 1922 Committee, commented: “This appears to be going in the opposite direction of encouraging philanthropy and major giving to charity.”

However, with the new rules not due to come into place until April 2013, there is time for a compromise. The Times (£) reports that one idea under consideration is to exempt high-value, “once in a lifetime” legacies from the new cap. Another option would be to limit the cap to donations to foreign charities, some of which do little or no charitable work.  Low's warning that a measure intended to hit the rich could end up hurting the most vulnerable is a cogent one.

Politically, the cap on charity tax relief is yet another example [cf. "the granny tax" and "the pasty tax"] of a measure the government has struggled to both explain and to defend. There are plausible arguments for all three taxes [ensuring the elderly contribute to deficit reduction, removing an anomaly that favours large traders over small ones, reducing tax avoidance by the wealthy] but Cameron and Osborne only seem to make them once it's already too late. The Daily Mail's caustic observation that the pair may now regret that they "swanned off to America" the week before the Budget will hurt because it is true.

David Cameron talks to sudents at The Al Azhar University on April 12, 2012 in Jakarta. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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As Donald Trump once asked, how do you impeach a President?

Starting the process is much easier than you might think. 

Yes, on Friday, Donald Trump will be inaugurated as the 45th President of the United States. And no, you can’t skip the next four years.

But look on the bright side. Those four years might never happen. On the one hand, he could tweet the nuclear codes before the day is out. On the other, his party might reach for their own nuclear button – impeachment. 

So, how exactly can you impeach a President? Here is our rough guide.

OK, what does impeachment actually mean?

Impeachment is the power to remove an elected official for misconduct. Here’s the relevant clause of the US Constitution:

“The President, Vice President and all Civil Officers of the United States, shall be removed from Office on Impeachment for, and Conviction of, Treason, Bribery, or other high Crimes and Misdemeanors.”

Impeachment is actually a legacy of British constitutional history, and dates back as far as 1376, but according to our own parliamentary website, in the UK “this procedure is considered obsolete”. 

It’s up to the US Congress to decide whether to impeach and convict a President. Both houses are controlled by the Republicans, so impeaching Trump would mean turning against one who is – technically at least – one of their own. Since he’s already insulted the neighbouring country, supported discrimination against Muslim immigrants and mocked a disabled reporter, their impeachment threshold seems pretty high. But let’s imagine he surpasses himself. What next?

The impeachment process

Members of the House of Representatives – the lower chamber of the Congress – can start the impeachment process. They in turn may be encouraged to do so by voters. For example, there is a whole Wikipedia page dedicated to people who tried to impeach Barack Obama. One Impeach Obama supporter simply gave his reason as stopping the President from “pushing his agenda”. Another wanted to do so on the grounds of gross incompetence...

But for an impeachment attempt to actually work, the impeacher needs to get the support of the house. If a majority agree with the idea of impeaching the elected official, they nominate members to act as prosecutors during the subsequent trial. This takes place in the Senate, the upper house of Congress. In most impeachments, the Senate acts as judge and jury, but when a President is impeached, the chief justice of the United States presides.     

Two-thirds of the Senate must vote for impeachment in order to convict. 

What are the chances of impeaching Donald Trump?

So if Trump does something that even he can’t tweet away, and enough angry voters email their representatives, Congress can begin the process of impeachment. But will that be enough to get him out?

It’s often assumed that Richard Nixon was kicked out because he was impeached for the cover up known as the Watergate Scandal. In fact, we’ll never know, because he resigned before the House could vote on the process.

Two decades later, the House got further with Bill Clinton. When it emerged Clinton had an affair with Monica Lewinsky, an intern, he initially denied it. But after nearly 14 hours of debate, the Republican-controlled House of Representatives decided to impeach him on grounds including perjury and obstruction of justice.

In the Senate trial, Clinton’s defenders argued that his actions did not threaten the liberty of the people. The majority of Senators voted to acquit him. 

The only other Presidential impeachment took place in 1868, when President Andrew Johnson, removed a rabble-rouser from his Cabinet. The guilty vote fell short of the two-thirds majority, and he was acquitted.

So, what’s the chances of impeaching Trump? I’ll leave you with some numbers…

 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.