The Rising Costs of the British Welfare State has the Taxing Authority shaming People using Legal tax Avoidance Schemes

Posted by PITHOCRATES - August 11th, 2013

Week in Review

Britain’s aging population and her vast welfare state is making government very expensive per taxpayer.  As the tax base shrinks and people live longer into retirement state pensions and the National Health Service are consuming an ever larger percentage of the available pot of money.  Forcing the taxing authorities to get more money from each individual taxpayer.   Especially the wealthy.  Who are paying confiscatory tax rates to make up for that shrinking tax base.  So these people use every law in the tax code to minimize their tax liability.  Which the taxing authority strongly objects to.  As they want rich people to submit and pay.  No matter the amount they must pay (see Britain plans to name, shame ‘cowboy’ tax advisers by William James posted 8/12/2013 on Reuters).

British authorities would get the right to name and shame tax advisers who deliberately steer their clients into tax avoidance schemes that are likely to break the law, under a government proposal announced on Monday…

Tax avoidance schemes seek legal ways to reduce tax bills for companies or wealthy individuals. But some which take advantage of complex ownership structures, often involving overseas tax havens, are illegal.

The new policy would empower Her Majesty’s Revenue and Customs (HMRC) to name the so-called high risk tax advisers it considers to be promoting schemes which are deliberately opaque and likely to be hiding illegal activity.

Despite tax avoidance schemes being legal and the fact that only some people may be breaking the law the taxing authority will shame tax advisors who help their clients to not willingly submit and pay.  No matter how high those tax rates get.  Of course it’s nothing new in Britain.  For they have a record of excessively taxing some of their people.

The British Americans, for example.  But in the 1700s it was the cost of world war that they were trying to pay off.  Today it’s the cost of their massive welfare state they’re trying to fund.  Of course, that war debt may have lost the American colonies.  But it built an empire that lasted for a century.  So that war debt could be looked at as an investment into the future of all British people.  Unlike the cost of the welfare state.  Where it is just generational theft.  For those taxes today pay for obligations from the past.  Which doesn’t invest into the future of all British people.  But discounts their future.

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