If the budget deficit is really the issue this Coalition most wants to tackle, as they keep insisting, perhaps tackling the criminally low levels of tax major corporations pay would be a good place to start.
Meanwhile, as Seamus Milne points out in the Guardian:
“The richest 1,000 people in Britain have seen their wealth increase by £155bn since the crisis began – more than enough to pay off the whole government deficit of £119bn at a stroke. Anyone earning over £1m a year can look forward to a £42,000 tax cut in the spring, while firms have been rewarded with a 2% cut in corporation tax to 24%.”
We’re all in this together…?
“The Tory MP and tax lawyer Charlie Elphicke estimates 19 US-owned multinationals are paying an effective tax rate of 3% on British profits, instead of the standard rate of 26%. It’s all entirely legal, of course. But taken together with the multiple individual tax scams of the elite, this roll call of corporate infamy has become an intolerable scandal, when taxes are rising and jobs, benefits and pay being cut for the majority.
Not only that, but collecting the taxes that these companies have wriggled out of would go a long way to shrinking the deficit for which working- and middle-class Britain’s living standards are being sacrificed. The total tax gap between what’s owed and collected has been estimated by Richard Murphy of Tax Research UK at £120bn a year: £25bn in legal tax avoidance, £70bn in fraudulent tax evasion and £25bn in late payments.”
Tackling tax avoidance, reducing inequality, bringing down the deficit all go hand in hand, and would deliver benefits to the country across the board. No more cuts to public services and welfare. No more children falling into poverty. Lower rates of crime and social ills. And a balanced budget at the end of it all… and all it requires is a tax system which does mean we’re ALL in this together, not just those too poor to afford good accountants…