Tory Fury at Budget’s EU Stealth VAT

osborne EU

The EU-enforced tampon tax causing a cross-party rebellion isn’t the only example of Brussels stealth tax imposed in this Budget. Following a decision by the Court of Justice of the EU in June last year, the 20% VAT rate was also forced upon “energy saving materials”, previously taxed at just 5%. People who want to insulate their homes are being whacked by an EU tax hike. Worth reading John Redwood on this – it has gone down like a cup of cold sick with Tory backbenchers. 

Other areas covered by the EU’s barmy VAT rules include digital services like Netflix, now charged at the place of purchase. Not only this, British digital businesses selling products in EU member states are subject to local VAT rates, for example Croatian, Danish, and Swedish VAT rates of 25%, or even sky-high Hungarian VAT at 27%.

Osborne announced yesterday “We understand that tax affects behaviour. So let’s tax the things we want to reduce”By his own logic, the EU wants to reduce energy efficiency and online businesses…

Cracknell’s Coke Confession

Former Olympic rower James Cracknell, the thinking man’s Sol Campbell, has put his name to a new Policy Exchange report calling for a tax on sugary drinks. Cracknell, PX’s “Senior Research Fellow for Obesity and Physical Activity”, praises Mexico’s tax on sugar-sweetened drinks which caused purchases to fall by 12%, concluding:

“The human misery and drain on the public finances is so great that the government has no option but to intervene… [a sugary drinks tax] is on balance a sensible intervention to help prevent the rise in obesity”

Ironically this nannying tax would hit Cracknell himself. Three years ago, the failed Tory candidate confessed to Men’s Health his two “worst vices“:

“I used to put ketchup on everything… Now I just drink a lot of coke.”

Diet, presumably.

Of course, a tax on sugary drinks would disproportionately hit poorer families. And wouldn’t be noticed by multi-millionaire coke fiends like Cracknell…

H/T Christopher Snowdon

McDonnell’s Partially Published Tax Return

John McDonnell has published part of his tax return, declaring income of £61,575 in the year until April 2015, on which he paid £14,253 tax. Several eagle-eyed tweeters have pointed out that this is less than the £67,000 salary MPs were paid during this period. The discrepancy could possibly be explained by pension contributions, but the Shadow Chancellor’s team are in the Sunday Politics studio and aren’t responding to Guido’s texts. Sure there is a perfectly reasonable explanation…

UPDATE: A chartered tax advisor gets in touch:

Either what he has published is a second job or he has been a numpty and put his MP earnings on the wrong page. MPs should use special pages called SA102MP for their MP earnings, not the normal employment pages. If he has used the wrong pages it doesn’t fill you with confidence about his competence to run the UK’s tax system!

hmp

So is it fakery or foolery from McDonnell?

UPDATE II: McDonnell now says he has published his “full tax return”, which was filled out by an accountant and can be viewed as a PDF here. Pension contributions do indeed account for the missing £5,000. Though where is his SA102MP form as required for MPs? HMRC say that form must be used if you were:

  • a Member of Parliament (MP)
  • a Minister in the House of Commons
  • a Minister in the House of Lords We deal with MPs and Ministers tax records separately.

He still has until midnight if he has forgotten…

Corbyn Guru Plugs ‘Joy of Tax’ Chez Ashcroft

Anglia Ruskin University are very excited to announce a series of free public lectures taking place on campus this autumn, where Corbyn economics guru and Cameron joke fodder Richard Murphy will “share his Joy of Tax”. According to the press release, loony left blogger Murphy “is credited with shaping Corbyn’s economic strategy, also advises trade unions on tax policy. He is the author of The Joy of Tax and a founder of the Tax Justice Network”. The contents of the lecture will not exactly be kind to, say, former Belize-based tax exile non-doms. Appropriate, then, that it “will take place on Anglia Ruskin’s Cambridge campus in the Lord Ashcroft Building”…

Shock: Labour Back Cut in Corporation Tax

“We believe that we can tackle the deficit by halting the tax cuts to corporations,” says Labour’s new Shadow Chancellor John McDonnell. So Guido is not sure what he is going to make of his party supporting the Tories’ corporation tax cut in the Finance Bill debate last night. In a curious exchange between Treasury minister David Gauke and his shadow Barbara Keeley, Labour strangely backed the move:

Barbara Keeley: “Labour is in favour of support for businesses, which is what we need to discuss as we consider the clause. We want to help British businesses to invest in the UK and to enable long-term investment. We will support the corporation tax measures…”

David Gauke: “I begin by welcoming the support of the hon. Member for Worsley and Eccles South for the reduction in corporation tax… I certainly give way to the hon. Lady, who can confirm her party’s and, indeed, the shadow Chancellor’s support for this measure.”

Barbara Keeley: “I do not think it would be my place to confirm the shadow Chancellor’s support for the measure…”

David Gauke: “I note that the hon. Lady said that although she is able to make a statement about party policy as the Labour party Front Bencher in this Committee, neither the leader of her party nor the shadow Chancellor are in a position to do so. If that is the way the Labour party operates, that is one for that party, curious though it might be to the rest of us.”

The question of “Rate of corporation tax for financial years 2017-2020” – i.e. to be cut to 18% – was then put and agreed to.

Wonder what McDonnell makes of that!

Corbynomics Guru Gets Brillo’d

Obscure tax blogger and Twitter eccentric Richard Murphy is now unofficially advising Corbyn on his economic policy. Readers will remember Guido’s past stories on the hypocritical ‘tax justice’ campaigner, well today he got Brillo’d on the Daily Politics:

Including such gems as:

“One of the ideas I’ve got is to create modest amounts of inflation…

At the moment I would add to the deficit…”

Coming soon to a Tory attack ad near you…

Douglas Carswell v Owen Jones

Douglas Carswell wasn’t going to let Owen Jones get away with saying “I want to pay more tax”…

Who does he think he is, Charlotte Church?

How Sugar Tax Would Affect You

sugar tax

Prohibitionist doctors from the British Medical Association have published a report demanding an extra 20% tax on sugary drinks in order to fight obesity. Including VAT, that would raise tax on a can of deliciously refreshing coke to a whopping 40%…

Osborne Spectacularly Trolls Renewable Industry

Osborne’s Budget announcement that green energy producers will no longer be exempt from the Climate Change Levy is driving the renewable industry into meltdown. The levy used to only apply to non-renewable energy but, in a spectucular trolling exercise, now […]

+ READ MORE +

Bob Crow’s Memorial Tax

BOB-CROW-MEMORIAL-TAX

The cut in housing benefit for under-occupied state housing was mis-named by Labour as the ‘Bedroom Tax’, for want of a snappier description. The official title of ‘Spare Room Subsidy’ was by comparison an also-ran. Despite being a benefit reduction […]

+ READ MORE +

Gordon’s Tax and Benefits Mess

tax+benefits

According to an ONS release today the mythical average household is £31 better off after taxes and benefits are taken into account. Think about all the complexities of tax collection collection and benefit calculation, the bureaucracy and time wasted. It […]

+ READ MORE +

Voice of Angel to Critics: “Hopefully Your Dick Will Fall Off”

church

Charlotte Church spent her Saturday marching with the People’s Assembly Against Austerity – whose aims include “increasing taxes on the super-rich” and “closing tax loopholes”.

As Guido revealed in the Sun on Sunday, this is the same Cardiff […]

+ READ MORE +

OZBOT VERSUS ANDROGENOID OZBOT VERSUS ANDROGENOID
“Fat Cats For EU” “Fat Cats For EU”
“CHEATED” LIBDEM PICTURED CAMPAIGNING ON BATTLE BUS “CHEATED” LIBDEM PICTURED CAMPAIGNING ON BATTLE BUS
CHRISTINE HAMILTON HIRED ON THE PUBLIC PAYROLL CHRISTINE HAMILTON HIRED ON THE PUBLIC PAYROLL
CONSERVATIVES IN: SPOT THE DIFFERENCE CONSERVATIVES IN: SPOT THE DIFFERENCE
HULL UNIVERSITY THIRD TO DISAFFILIATE FROM NUS HULL UNIVERSITY THIRD TO DISAFFILIATE FROM NUS
CAMERON’S AIRFARE FABLE CAMERON’S AIRFARE FABLE
TELEGRAPH BLOODBATH: NEW JOBS CULL UNDERWAY TELEGRAPH BLOODBATH: NEW JOBS CULL UNDERWAY
CCHQ FREEZE MPS AND ASSOCIATIONS OUT OF VOTE SOURCE CCHQ FREEZE MPS AND ASSOCIATIONS OUT OF VOTE SOURCE
OSBORNE MISSED BORROWING TARGET BY EVEN MORE THAN PREVIOUSLY THOUGHT OSBORNE MISSED BORROWING TARGET BY EVEN MORE THAN PREVIOUSLY THOUGHT
POLICE INVESTIGATING SHADOW MINISTER OVER ELECTION EXPENSES POLICE INVESTIGATING SHADOW MINISTER OVER ELECTION EXPENSES
TOOTING BY-ELECTION CAMPAIGN KICKS OFF IN BATTERSEA TOOTING BY-ELECTION CAMPAIGN KICKS OFF IN BATTERSEA
ELECTORAL COMMISSION ON JOCK-‘COPTER CAMPAIGN ELECTORAL COMMISSION ON JOCK-‘COPTER CAMPAIGN
STURGEON DUCKS CHOPPER QUESTION STURGEON DUCKS CHOPPER QUESTION
NUS CHIEF EXECUTIVE PAID FIVE TIMES AVERAGE GRADUATE NUS CHIEF EXECUTIVE PAID FIVE TIMES AVERAGE GRADUATE
CORBYN CLAPPED COMMIE LEADER FOR REFUSING TO TOAST THE QUEEN CORBYN CLAPPED COMMIE LEADER FOR REFUSING TO TOAST THE QUEEN
SNP CHOPPER NOT DECLARED PROPERLY SNP CHOPPER NOT DECLARED PROPERLY
SADIQ RAISES EU FLAG ABOVE CITY HALL SADIQ RAISES EU FLAG ABOVE CITY HALL
SAJ ‘PRIVATELY SAID HE WANTED TO LEAVE’ SAJ ‘PRIVATELY SAID HE WANTED TO LEAVE’
CRICK CRICK’D CRICK CRICK’D
EU WANTS CULTURAL QUOTAS ON NETFLIX AND AMAZON PRIME EU WANTS CULTURAL QUOTAS ON NETFLIX AND AMAZON PRIME
LIBDEM WHO COMPLAINED TO POLICE ABOUT TORY ELECTION FRAUD BROKE SPENDING RULES LIBDEM WHO COMPLAINED TO POLICE ABOUT TORY ELECTION FRAUD BROKE SPENDING RULES
LABOUR WON’T ALLOW CONFERENCE DELEGATES TO SELF-IDENTIFY LABOUR WON’T ALLOW CONFERENCE DELEGATES TO SELF-IDENTIFY
WORST BEATLES TRIBUTE BAND EVER WORST BEATLES TRIBUTE BAND EVER
CELEBRITY CONSUMER CHAMPION HITS BACK AT BSE CELEBRITY CONSUMER CHAMPION HITS BACK AT BSE
MOMENTUM REJOICE! ONLY 65% THINK CORBYN NOT READY TO BE PM MOMENTUM REJOICE! ONLY 65% THINK CORBYN NOT READY TO BE PM
TAXPAYER FUNDED ASH LOBBIED GOVERNMENT FOR PLAIN-PACKS TAXPAYER FUNDED ASH LOBBIED GOVERNMENT FOR PLAIN-PACKS
REMAIN’S GILLIAN DUFFY MOMENT REMAIN’S GILLIAN DUFFY MOMENT
NORTHERNERS MOCK “GRIM UP NORTH” BURNHAM NORTHERNERS MOCK “GRIM UP NORTH” BURNHAM
LONG-TERM RISE OF ANTI-POLITICS LONG-TERM RISE OF ANTI-POLITICS