05 Wednesday Nov 2014
Posted by Mike Sivier http://voxpoliticalonline.com/2014/11/05/this-is-how-the-annual-tax-statement-should-have-appeared/
We all owe a debt of thanks to Richard Murphy, over at Tax Research UK. He has broken down the information in George Osborne’s misleading ‘annual tax statement’ into its component parts and then put a new version together, under categories that more accurately describe the spending concerned.
Then he turned the information into a handy pie chart – similar to Osborne’s but with one major change:
This version is accurate.
Here it is:
Let’s just compare it with Osborne’s…
The most interesting to Vox Political is the perception gap between Mr Murphy’s calculation of the total proportion of tax spent on unemployment benefits – 0.67 per cent – and Osborne’s ‘Welfare’ heading, which constitutes 24 per cent of spending.
Talk to most people about ‘Welfare’ and they’ll think you mean unemployment benefits – so the Osborne chart will make them think that government spending on the unemployed is no less than 16 times as much as is in fact the case.
When a government minister exaggerates the facts by that much, he might as well come out and admit that he’s lying to the people.
Mr Murphy wrote: “This is the statement George Osborne would not want you to see because it makes clear that subsidies, allowances and reliefs extend right across the UK economy. And they do not, by any means, appear to go to those who necessarily need them most. The view he has presented on this issue has been partial, to say the least, and frankly deeply misleading at best.”
He wrote: “Add together the cost of subsidies to banks, the subsidy to pensions and the subsidy to savings (call them together the subsidy to the City of London) and they cost £103.4bn a year – more than the cost of education in the UK.
“It’s also no wonder house prices are so distorted when the implicit tax subsidy for home ownership is £12.6 billion a year.”
He also pointed out that unemployment benefits cost only half the amount used to subsidise personal savings and investments.
For full details of Mr Murphy’s calculations, visit his article on the Tax Research UK site.
Mr Murphy tweeted yesterday: “Almost every commentator now agrees that Osborne is going to spend a fortune sending out tax statements that are wrong. Why not cancel now?”
He won’t unless he’s forced to; he has a political agenda to follow.
That is why Vox Political launched a petition to achieve just that.
If you haven’t already, please visit the petition on the Change.org website, sign it, and share it with your friends.
While you’re at it, feel free to share the infographic, created to support the petition:
Please also read yesterday’s Vox Political article on Osborne’s ‘annual tax summaries’, if you haven’t already.