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

Photo: Getty Images
Show Hide image

Let 2016 be the year that Ireland gives women the right to choose

As we commemorate and celebrate the centenary of the Easter Rising next year, we must remember that while the constitution was hard fought for it cannot be static. 

There is mounting pressure for the Irish government to look into decriminalising abortion. It has been growing since Savita Halappanavar’s death three years ago in a hospital in Galway due to complications during pregnancy. She was refused an abortion because Irish law forbids it. Earlier this month Irish women tweeted the Taoiseach Enda Kenny about their periods using the #repealthe8th in an attempt to bring attention to the issue. Now last Friday, Amnesty International published a letter calling for the decriminalisation of abortion internationally, signed by 838 doctors, most importantly this included some of Ireland’s leading healthcare professionals. This is the perfect time for political parties to commit to holding a referendum on the issue if elected they are elected and form the next government in 2016.

One part of the Irish legislative process I have always been proud of is the use of referendum and bringing serious questions to the electorate. It protects the constitution from changing on political whims or based on the beliefs of whatever party is in government. As such it remains a document of the people, it was after all put to vote before it was instituted in 1937. It also passes issues, which have proved contentious and in other countries have relied on the sympathy of lawmakers, by popular consent. Same sex marriage was legalised in a beautiful display of support, 62% of the electorate came out to vote for equality. Social media was full of pictures of Irish people living abroad going home especially for the referendum.

There has previously been a number referendums on abortion and following Savita’s death, the  Protection of Life during Pregnancy Act 2013 was brought in which allowed abortion if the mother’s life was in danger. It was important and a sensible measure to bring in. However it resulted in serious splits and some contentious situations. Lucinda Creighton defied Fine Gael’s whip and found herself stripped of her ministry and ostracised, leading to the creation of her new party Renua Ireland. Creighton was recently asked if she would agree with aborting baby Hitler. This is the ridiculous side of the debate which doesn’t help either side. Many thought that the 2013 act was too quickly done and not properly explained or understood. A referendum is the best way to avoid this. The question can be explained properly and debated to give people access to more information. Once passed, it is done so with consent from a majority of the electorate and this makes it much more difficult to argue against its legitimacy than if it is forced through. The result is also binding regardless of the current government’s stance, you can have a second vote but you can’t force people to vote the other way.

Public support for legalising or extending abortion rights is there. A RedC poll for Amnesty International in July showed 67 per cent of people thought abortion should be decriminalised while 81 per cent thought it should be allowed in more situations. 45 per cent were in favour of abortion whenever a woman wanted it. It is not an overwhelming figure but if 45 per cent of people believe this should be instituted then they ought to be listened to and the question brought to the country.

Realistically, nothing will be done before the next election which is expected to be held in early 2016. However now is an excellent time for political parties to examine their stance on abortion and look at holding a referendum and making it part of their manifestoes. The new government will then be in a position to announce a new referendum on abortion as soon as they are in power. The last one was held in 2002, meaning that many young people particularly women at the height of their fertility have never actually had a say on this matter.

As we commemorate and celebrate the centenary of the Easter Rising next year, we must remember that while the constitution was hard fought for it cannot be static. The world that its authors inhabited is not the same as the one we live in today. The constitution has changed to bring peace to Northern Ireland, to legalise divorce and same sex marriage, let 2016 be the year it changes to give women the freedom to choose.