Social Security budget as other than cost

Somebody needs to defend the idea of government spending on social security. Long under attack from the Tories and now being bashed by Labour as well, the idea of a Welfare Net is being demonised. Whilst this is to be expected from the Tories I see a massive betrayal of Labour principles when the issue of welfare spending is conflated with ideas surrounding the deficit. Tax avoidance is a much bigger culprit.

The Social Security safety net was originally brought into being to protect those least able to defend themselves against the harsher ravages of the Capitalist Venture. Thinking about it in these terms reveals that it is not actually a cost against Capitalism, but is undoubtedly an investment which enables Capitalism to flourish. As such it should be clearly trumpeted by Labour as a totally justified element of a socially just settlement between state and people. It should be seen as an integral part of a good mixed economy. Just ask Germany or the Scandinavian countries.

It is high time for Labour to shake off the paralysis caused by fear of losing the next election. Instead of arguing about policy within the terms set by the Tories, Labour must challenge the assumptions upon which those policies are founded. The people of UK need a new political settlement and only Labour can deliver it, but they must be bold enough to be different. Go big or go home!

Democracy belongs to voters, not to politicians

So, more and more instances recently of the government withholding information from the people of UK. Reports on food banks and immigration deliberately held back because they reveal truths which undermine the government's ideological justifications. There have been numerous instances where ministers have been called to account by The UK Statistics Authority for serious misrepresentation of statistical data in support of policy. Now we have an apparent cover-up over the resignation and arrest of David Cameron's aide Peter Rock.

All this on top of a clutch of pre-election promises which have been cynically ignored and broken: NHS, Banks, VAT, tuition fees etc...........

If that has not been bad enough this coalition government have visited a horribly draconian austerity on the most vulnerable people in our society causing misery, poverty, despair and worse. This has been justified in terms of economic necessity. It would have been completely unnecessary if our government had changed its priorities just a bit. In tandem with this crusade against the poor, tax-avoidance schemes by companies and corporations have been depriving UK of tax revenue of at least £40bn and possibly as much as £150bn per annum. The apparent lack of any political will to tackle this has caused government borrowing to add £100bn annually to the National Debt. The City Banks seem a law unto themselves with few apparent checks and balances from government. It is difficult to get any concerns about these issues ever discussed in a proper debate, but there is a steady drip-feed of disinformation from the politically "captured" media insisting that the demonized victims of these policies are to blame for the whole nation's ills.

Half the 13 millon people living in poverty in this the 7th largest economy in the world are in a household where somebody is working. Deregulation of the labour market and subtle demonization of Trade Unions have eroded the rights of workers to the point where this disgusting fact has become possible. We now hear that the Conservatives regard themselves as the "Worker's Party".

What we are witnessing is the elected representatives of the people deliberately deceiving those people who have voted them into office. The government work for us. We elect them to run the country on our behalf. Our taxes pay their substantial salaries and expenses. When they lie to us they are renouncing the very democracy which has placed them in positions of trust.

This government has thereby relinquished their claim to be representing our interests, and must therefore be operating in support of a different agenda which is against our interests. This means they are no longer operating legitimately.

They must therefore resign their positions and call an immediate general election.

The Pin-Stripe Mafia - How Accountancy Firms Destroy Societies.

Excerpts from: visar.csustan.edu/aaba/PINSTRIPEMAFIA.pdf


Tax revenues are the life-blood of all democracies. Without these no state
can alleviate poverty or provide social infrastructure, healthcare, education,
security, transport, pensions and public goods that are necessary for all
civilised societies. All over the world tax revenues are under relentless
attack from a highly organised tax avoidance industry dominated by four
accountancy firms: Deloitte & Touche, PricewaterhouseCoopers, KPMG
and Ernst & Young. They employ thousands of individuals for the sole
purpose of undermining tax laws which does not create any social value,
but enables corporations and wealthy elites to dodge corporate tax, income
tax, National Insurance Contributions (NIC), Value Added Tax (VAT) and
anything else that might enable governments to improve the quality of life.

The loss of tax revenues is a major cause of the current economic crisis that
is inflicting misery on millions of people. Tax avoidance is part of the
guerrilla warfare conducted by accountancy firms against the people. Each
year, about 30%-40% of the financial legislation outlaws tax dodges dreamt
up by accountancy firms. The UK tax tribunals and courts hear around
11,000 cases and many of these relate to dodges that have no economic
substance. The UK is estimated to be losing around £100 billion of tax
revenues each year and a large part of this is due to the activities of the Big
Four accountancy firms. Despite record number of millionaires, billionaires
and levels of corporate profitability, the UK tax take in 2010-11 added up
to 37.2% of the GDP, compared to 43% in 1976. Rather than challenging
the tax avoidance industry successive governments have shifted the tax
burden to less mobile capital, labour, consumption and savings, as
evidenced by higher NIC and VAT and the lowering of thresholds for
higher rates of income tax.

There is little retribution in the UK. Despite judges outlawing their tax dodges, successive governments have failed to investigate the firms, or prosecute their partners. Instead, the partners of major accountancy firms are given peerages, knighthoods, public accolades and government consultancies, all funded by taxpayers. The same firms have colonised regulatory bodies,
fund political parties and provide jobs for former and potential ministers.
This penetration of the state has bought them political insurance and their
anti-social practices continue to inflict enormous social damage.

The power of the big accountancy firms has increased, is increasing, and
must be diminished because they are using it to undermine democracy, law
and welfare of the people. Its result is that over the world millions of
people are facing erosion of living standards and hard won social rights.
People are either paying more in taxes for diminishing social rights,
pensions, education and healthcare, or foregoing them altogether. A key
reason is that major corporations and wealthy elites are avoiding and even
evading taxes.

The public face is that accountancy firms advise clients on tax planning,
but too many manufacture tax dodging schemes on an industrial scale.
These schemes create nothing of value to society and force elected
governments to shift taxes away from giant corporations and wealthy elites
to labour, consumption and savings, depressing ordinary people’s
purchasing power and causing economic crises. There is no organised
industry openly devoted to enabling clients to dodge health and safety, food
hygiene, building, immigration, transport or other laws, but big
accountancy firms employ and train thousands of people for the sole
purpose of undermining elected governments and depriving millions of
people of much needed healthcare, education, pensions, security and other
essentials. Occasionally, courts brand some dodges marketed by
accountancy firms as ‘unacceptable’ but UK governments have not
followed it up by prosecuting the firms or closing them down for shady
practices. Instead, partners of the same firms are given public contracts,
knighthoods, peerages and public accolades. Their influence runs deep into
the UK state and shields them from retribution.

The UK Treasury estimates that it may be losing £40 billion of tax
revenues each year, but leaked government papers suggest that the
amounts may be between £97 billion and £150 billion. Some economic
models suggest that around £100 billion, and possibly £120 billion of
tax revenues are lost each year.

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Just to allow some comparisons: These are typical amounts of annual UK government spending in various areas:

National Health Service £100 billion
State pension £75 billion
Education £ 52 billion
Interest on National Debt £48 billion

Defence £36 billion
Housing Benefit £17 billion

Foreign Aid £8 billion

Job Seekers Allowance £5 billion

Employment & Support Allowance £4 billion