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February 16, 2005
Poacher turned Gamekeeper
One of the more impressive things about New Labour is how some of its most ardent supporters would once have vehemently opposed policies they are now implementing. And in some respects there can be no better example than Paymaster General Dawn Primarolo.Red Dawn was opposed to the 1991 Gulf War, yet voted the Government line on divisions 117 and 118 giving approval for British involvement in Iraq. Let's make that clear, the same person who was opposed to British involvement in the liberation of Kuwait was, just over 10 years later, in favour of invading Iraq on the basis of dubious intelligence. An invasion the legality of which came down to the opinion of Tony Blair.
And then there's her position on taxation. Dawn was a prominent Poll Tax protestor, one of many who refused to pay and risked jail. All credit to her for opposing an inequitable form of taxation. Yet as Paymaster General she has presided over some of the most draconian taxation legislation in centuries. You may think that's an exaggeration, but consider the latest proposal to come out of the Inland Revenue. In order to stamp out tax avoidance, the Inland Revenue is aiming to retrospectively tax workers based on how it views the situation at a future point in time. So, for example, being a good citizen and aware of the pensions crisis, you have annual bonuses paid into a pension scheme. These payments attract lower levels of tax and NICs. Three years later the Inland Revenue, without recourse to Parliament, decides that such a scheme is now considered tax avoidance. Without warning you're suddenly faced with an unexpected tax bill. Not only that, but a bill covering a period when the way you'd organised your affairs was considered acceptable. The IR's justification for this?
A Revenue spokesman said piecemeal attempts to tackle tax and Nics avoidance "have been met with ever more complex and contrived schemes".
No mention there of role Gordon Brown's over-complication of the taxation system has played in this at all. Curious how the IR forgets to mention that, taking a single example, Brown's decision to introduce a 10K corporation tax threshold, ignoring the advice of tax specialists and accountants, resulted in tens of thousands of business incorporating to benefit. Then rather than admit he'd got it wrong he instead introduces a dividend tax.
Fascinating isn't it, how New Labour has so thoroughly corrupted the principles of MPs we would once have considered true Labour. From opposing war in Iraq to supporting it; from opposing unfair taxes to introducing more draconian forms of taxation; from opposing private investment in public services to total commitment to PFI; from supporting the rights of the people to the suspension of Habeas Corpus; from upholding the rights of Parliament to handing their powers to unaccountable mandarins in the Civil Service.
On issue after issue we see too many Labour MPs who appear to have sold, if not their souls then at least their principles in exchange for what? Nothing of lasting value. Were their principles really so weakly held, or the power of government so corrupting? Just think about that over the next couple of months.
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Posted by Clive on February 16, 2005 12:19 PM in the category Old Stuff