Student Visas
Debate between Chris Bryant and Nadhim Zahawi(11 years, 5 months ago)
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Nadhim Zahawi
My hon. Friend is absolutely right. The disaggregation and further decimation of that information—
Nadhim Zahawi
Dissemination, I apologise. I will get my English right eventually. I only arrived here in 1978. I apologise to the hon. Gentleman.
Nadhim Zahawi
The hon. Gentleman is quite right.
We can do three things to solve this problem. First, we must continue to come down hard on immigration fraud. The Government are right to deal robustly with those who abuse the student route. The fact that we have closed down more than 500 bogus colleges since the election shows how easy it has been to exploit the student visa system in recent years. If we want to carry the public with us, it is vital to maintain public confidence in the integrity of our immigration system.
Finance (No. 4) Bill
Debate between Chris Bryant and Nadhim Zahawi(12 years, 7 months ago)
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Chris Bryant
Broadly speaking, of course I agree with the hon. Gentleman; a very high tax rate could act as a disincentive to many people and, as the hon. Member for Vale of Glamorgan (Alun Cairns) was intimating, could make this country uncompetitive compared with other countries. However, I just ask two questions in return, the first of which is: what counts as a “very high” tax rate? That is a judgment call; it is about our rate relative to that of others and whether we have the balance right. My second question is: given that, when is the right time to change? I just say to hon. Members that now is not the time, because this country will gird our economic loins and start seeing economic growth only if everybody does genuinely feel we are all in it together. This move undermines that precise point.
Nadhim Zahawi
The hon. Gentleman is making a thoughtful speech and some serious points. He talks about the relativity of the level at which we set income tax, but of course we must not forget that it is not just 50p because there is national insurance on top, taking one over the 60p mark to 62p. Some of the things we need to look at are the behavioural changes we saw when income was moved to avoid the 50p rate when it was first brought in, and the disparity between corporation tax and capital gains tax. When income is taxed at 62% but capital gains and corporation tax rates are much lower, those very wealthy individuals who are creating wealth have options to move money around, so there will be behavioural change as we go up the income tax scale and create that differential.
Chris Bryant
I am grateful to the hon. Gentleman for giving way. Broadly speaking, I agree with elements of what he said. For example, it is a mistake, as hon. Members have said, to seek to tax people solely via their income because that is not the sole determinant of wealth and therefore of what one should put into the national pot. Similarly, I am quite critical of those in my constituency who say, “Mrs Jones down the road—she’s never paid tax.” Nobody never pays tax because everybody pays VAT in some shape or form; everybody makes some kind of contribution. My fundamental point is that now is not the right time to change the top rate. We are living in austere times and if the country is to gird its economic loins, we need everyone to be on the same side, but this measure is relatively divisive.