Tax transparency treats the symptom not the cause

If we worry about politicians dodging taxes, attack the dodging, not the privacy, writes the TPA's M

Do we really want to live in a country where politicians have to hand out their tax returns, medical history and birth certificate to the press, like they do in the United States? I don’t think voters want to make disclosing all that a part of the price of running for office in Britain. But the legitimacy of the tax and benefit system has been undermined by its complexity and too many stories of people breaking the rules, or twisting them out of all recognition.

We could respond to that by demanding more and more intrusions on people’s privacy. Polly Toynbee is already talking about forcing everyone to make the same kind of disclosure that the mayoral candidates just have. That might mean some people who are in the public eye pay more.  Others will ignore it though, because they won’t be scrutinised or don’t care what we all think of them.  Do you really think Ryanair boss Michael O’Leary would care if anyone called him a tax dodger? (Just a hypothetical example, I don’t have any reason to think he doesn’t pay his taxes). We would have a tax system that discriminates against those who care if the Guardian calls them names.

It won’t just be an issue for the fortunate either.  If we all have to disclose the taxes we pay, then we’re one headline away from having to disclose any benefits we receive too. Benefit fraud upsets the median voter as much as tax dodging.

Instead of descending into an Athenian pit of mistrust, it would be much better to reform the tax and benefit system, so we can again trust that people will pay their fair share. That means simpler, lower taxes so that there are fewer loopholes and there is less of an incentive to spend time and money looking for them. It means treating income from capital and labour the same – taxing each stream of income once – so that we don’t have to care whether Ken Livingstone sets up a business or not. Hopefully, that’s the kind of tax system we will outline in the forthcoming report of the 2020 Tax Commission, which we have been working on at the TaxPayers’ Alliance with the Institute of Directors.

If Britain’s tax code remains as dysfunctional as it is now, then voters and the press will rightly demand that politicians prove they aren’t taking advantage of its idiosyncrasies. If they want their privacy, they need to stop putting sticking plasters on the gaping wound that is tax avoidance and evasion – inadvertently hitting charities in the process – and instead address the fundamental problems with a tax system that has lost its legitimacy.

A nightmarish future: Compelled to post your tax return on Instagram. (Getty)

Matthew is the director of the TaxPayers' Alliance

Getty
Show Hide image

Commons Confidential: Dave's picnic with Dacre

Revenge is a dish best served cold from a wicker hamper.

Sulking David Cameron can’t forgive the Daily Mail editor, Paul Dacre, for his role in his downfall. The unrelenting hostility of the self-appointed voice of Middle England to the Remain cause felt pivotal to the defeat. So, what a glorious coincidence it was that they found themselves picnicking a couple of motors apart before England beat Scotland at Twickenham. My snout recalled Cameron studiously peering in the opposite direction. On Dacre’s face was the smile of an assassin. Revenge is a dish best served cold from a wicker hamper.

The good news is that since Jeremy Corbyn let Theresa May off the Budget hook at Prime Minister’s Questions, most of his MPs no longer hate him. The bad news is that many now openly express their pity. It is whispered that Corbyn’s office made it clear that he didn’t wish to sit next to Tony Blair at the unveiling of the Iraq and Afghanistan war memorial in London. His desire for distance was probably reciprocated, as Comrade Corbyn wanted Brigadier Blair to be charged with war crimes. Fighting old battles is easier than beating the Tories.

Brexit is a ticket to travel. The Independent Parliamentary Standards Authority is lifting its three-trip cap on funded journeys to Europe for MPs. The idea of paying for as many cross-Channel visits as a politician can enjoy reminds me of Denis MacShane. Under the old limits, he ended up in the clink for fiddling accounts to fund his Continental missionary work. If the new rule was applied retrospectively, perhaps the former Labour minister should be entitled to get his seat back and compensation?

The word in Ukip is that Paul Nuttall, OBE VC KG – the ridiculed former Premier League professional footballer and England 1966 World Cup winner – has cold feet after his Stoke mauling about standing in a by-election in Leigh (assuming that Andy Burnham is elected mayor of Greater Manchester in May). The electorate already knows his Walter Mitty act too well.

A senior Labour MP, who demanded anonymity, revealed that she had received a letter after Leicester’s Keith Vaz paid men to entertain him. Vaz had posed as Jim the washing machine man. Why, asked the complainant, wasn’t this second job listed in the register of members’ interests? She’s avoiding writing a reply.

Years ago, this column unearthed and ridiculed the early journalism of George Osborne, who must be the least qualified newspaper editor in history. The cabinet lackey Ben “Selwyn” Gummer’s feeble intervention in the Osborne debate has put him on our radar. We are now watching him and will be reporting back. My snouts are already unearthing interesting information.

Kevin Maguire is the associate editor (politics) of the Daily Mirror

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 23 March 2017 issue of the New Statesman, Trump's permanent revolution