Usain Bolt is wrong to oppose our tax laws

The sprinter won't compete in Britain again because he doesn't want to pay more tax.

Amid the drama of the Jamaican team's world record time in the 100m relay, which I was fortunate enough to witness in person, few noted Usain Bolt's post-race comments on tax. Asked why he did not compete in Britain more often (he refused to appear at Crystal Palace in 2010, for instance), Bolt cited our tax laws. "As soon as the law changes I'll be here all the time," he said.

Bolt's objection is to a law that allows the government to take a cut of his sponsorship and endorsement earnings as well as his appearance fee, which is currently taxed at 50 per cent. For instance, were he to take part in 10 meetings worldwide, with one in Britain, the Inland Revenue would tax him on 10 per cent of his worldwide sponsorship earnings. None of which is objectionable. Without tax funded events such as those in Britain, Bolt, who earns around £10m a year, would have no platform on which to perform and, consequently, no sponsorship. Those countries that don't tax non-resident sports people, as Britain does, should do.

The law was waived for the Olympics at the behest of the IOC (one wonders if we would have seen Bolt otherwise) and the government is now under pressure to permanently suspend it. But given the revenue it would lose from those athletes who do grace us with their presence, it is understandably reluctant to do so. Instead, it is Bolt who should reverse his stance and accept that it is legitimate for him to pay a proportion of his worldwide earnings to the British government. After all, having spending £9bn on the Olympics, we could do with the money.

Bolt's management complain that "his tax liability in the UK would exceed his appearance fee". Yet if true, that is only because his sponsorship earnings are so exorbitant to begin with. In any case, is it utopian to hope that athletes might be motivated by something other than money?

Update: Here's what the Treasury had to say on the subject in this year's Budget.

HMRC will revise its practice on the taxation of non-residents sports people to take training days into account when calculating the proportion of worldwide endorsement income subject to UK tax.

Jamaica's Usain Bolt reacts after winning the men's 200m Olympics final. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Theresa May dodges difficult questions about social care and NHS in Andrew Neil interview

Prime Minister was on message but on the back foot.

Theresa May was interviewed for 30 minutes by Andrew Neil on BBC One this evening, and she managed to say next to nothing. Whether you see that as skilful politics or shameless dishonesty, there was very little that came out of this interview. Here’s the little we did learn:

The Prime Minister is assuming victory - even if she says otherwise

Although the Conservative party’s campaign has been based on trying to convince voters that there is a chance Jeremy Corbyn could be Prime Minister (to spook them into voting for May, and against a Corbyn-led coalition – a very unlikely scenario in reality), Theresa May revealed just how strongly her party is assuming victory. For example, when pressed on her plans for funding social care (means-testing the winter fuel allowance, and taxing the elderly on their assets), she could only answer that her government would hold a consultation to iron out the details. No matter how hard she tries to push the message that Corbyn is en route to No 10, if her policies are not policies at all but ideas to be fleshed out once she returns to power, this remains just rhetoric. As Neil asked about the consultations: “Wouldn’t you have done that before you came out with the policy?”

The Tories won’t lower themselves to costing their manifesto

It has always been the case that Labour has to work much harder than the Tories to prove its economic credibility, which is why in the Ed Miliband days it was decided that all policy proposals had to add up. But never have the Tories been so shameless in taking advantage of that political fact. For all the stick its received for being idealistic, Corbyn’s manifesto is more costed than the Tory effort, which May herself admitted during this interview is a set of “principles” rather than policies: “What we set out in our manifesto was a series of principles.” Where is the money going to come from for £8bn extra for the NHS? “Changing the way money is used”, “The strong and growing economy”, and “a variety of sources”, of course! At least Labour could patch together something about corporation tax and cracking down on tax avoidance if asked the same question.

Playing politics

Neil went in hard on May’s u-turn on her plan to fund social care – asking repeatedly why the Tories are now planning on bringing in a cap on how much the elderly have to pay, when originally there was no cap. All May could offer on this was that Corbyn was “playing politics” with the policy, and “scaremongering” about it. This deflection was flawed in a number of ways. First, it provided no explanation of what the policy will now be (what will the cap be? When will we know?), second, if Corbyn has been “scaremongering” it means he must have influenced the policy change, which May denies, and third, all it highlights is that May is herself “playing politics”.

Brexit is always the answer

As May cannot answer a single question about the specifics of policies or spending, Brexit is the perfect topic for her. It is a subject defined by its uncertainty and lack of detail, therefore something she can get on board with. She answered almost every question on every subject broached by Neil by asking who voters want around the Brexit negotiating table after the election – her or Corbyn.

Why are the polls closing? “...I’ve set out my vision for that strength in negotiations and that stronger plan. And the choice is who’s going to be doing those negotiations, me or Jeremy Corbyn.”

Are your policies uncosted? “...I think it is important that the country has certainty over the next five years, has the strong and stable leadership I think it needs, as I’ve just explained, particularly for those Brexit negotiations.”

Where is the extra NHS funding going to come from? “...Crucial to that, is getting the Brexit negotiations right, and that’s why this is so important. That’s why who is sitting around that negotiating table, 11 days after the election it’s going to start…”

Will National Insurance go up? “...Fundamental to that of course is getting the Brexit deal right and getting those negotiations right and having both a strong hand in those negotiations but also the strength of leadership in those negotiations…”

Will you break the immigration target promise for a third time? “...The question that people face is who do they trust to take this country though the Brexit negotiations..?”

But the soundbites must be working

A few seconds in to the interview, May had already used the phrase “strong and stable” and “my team”. While political insiders will groan and mock the repetitive use of such banal phrases, and emphasis on Brexit negotiations, we must remember the “long-term economic plan” slogan of 2015’s Tories. It worked, and clearly behind the scenes, the masterminds of the Conservative campaign believe these soundbites must be working. Theresa May is miles ahead of Jeremy Corbyn on the “who you trust to be Prime Minister” metric, which is why the Tories repeating how “strong and stable” their government would be, and running such a presidential campaign (“my team”, and May versus Corbyn) must be working.

Anoosh Chakelian is senior writer at the New Statesman.

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