Taxation Freedom Day Bill
Debate between Robert Halfon and David Nuttall(13 years ago)
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Mr David Nuttall (Bury North) (Con)
As always, it is a great pleasure to follow my hon. Friend the Member for Shipley (Philip Davies), who has demonstrated the great need for this Bill. I start by congratulating my hon. Friend the Member for Kettering (Mr Hollobone) on preparing the Bill and bringing it before the House today. In his opening remarks, he said that he thought that this was a simple and straightforward measure and, of course, in many ways it is. I have a great deal of sympathy for the measure, and I would have thought that hon. Members on both sides of the House could agree on the issue of transparency on tax matters.
I start from the position of broadly supporting the principle of ensuring that taxpayers should be given clear information about the size of their tax burden. I was initially very encouraged that the Bill would go a long way towards improving the transparency of our tax system, but when I began to study the detail of the Bill and consider all the issues involved, I found that in many ways it is far from simple and straightforward. Indeed, this is a fiendishly complex matter, which is not as simple and straightforward as it may appear at first sight.
I wish to deal with several issues in my contribution, the first of which is why making the tax burden more transparent is so important. Taxation legislation is incredibly complex, covering a wide variety of taxes and duties. Indeed, it is worrying that the list is so long. Most people, when they hear the word tax, automatically think of income tax, but that is just one of several taxes with which the individual might be burdened. To income tax, we can add value added tax, national insurance, capital gains tax, stamp duty, fuel duty, alcohol duty, tobacco duty, air passenger duty, insurance premium tax, landfill tax, corporation tax, petroleum revenue tax, council tax, the climate change levy and the aggregates levy. Then, for anyone who has still managed to live frugally enough to be left with any assets after paying their way through life while paying all those taxes, subject to the various exemptions and the nil rate band, those assets are taxed again, with the imposition of the inheritance tax.
Mr Nuttall
There is a great need for simplification of our tax system and a flat tax might well have a part to play in that.
Mark Twain is often attributed with the quotation that the only two certainties in life are death and taxes, and throughout the ages Governments have always cast around for things to tax. Over the years, we have had window taxes, beard taxes and brick taxes. I particularly like—only because it will give me the chance to mention that great son of Bury, Sir Robert Peel—the glass tax that was introduced in 1746, in the reign of King George II. At that time, glass was sold by weight and manufacturers responded to the tax by producing smaller and more highly decorated objects, often with hollow stems, which are today known as excise glasses. If anyone has ever wondered why the crystal glassmaking industry flourished in Cork and Waterford, it was because in 1780 the Government granted Ireland free trade in glass, which continued until 1825, when the tax in Ireland was restored. That led to a gradual decline in the industry until the glass tax was finally abolished by that great son of Bury, Sir Robert Peel, and his Government in 1845.
The complexity of today’s tax legislation is perhaps best illustrated by the fact that Pythagoras’s theorem can be set out in 31 words—I was told it was 24, but when I counted there were 31—the Lord’s prayer contains 66, the 10 commandments contain 179, the US declaration of independence contains 1,300 and the entire United States constitution, with all 27 amendments, apparently contains 7,818, but to get to grips with the United Kingdom’s tax system, one would have to purchase several weighty volumes such as Tolley’s tax manuals, setting one back several hundred pounds.
Future of the BBC
Debate between Robert Halfon and David Nuttall(13 years, 3 months ago)
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Mr David Nuttall (Bury North) (Con)
My hon. Friend says that the BBC is a jewel in the crown, but what percentage of the British public does he think would purchase a licence if doing so were not compulsory?
Robert Halfon
If my hon. Friend waits, I will answer his question in a second. I would pay double for the licence, but the problem is that we have taxation without representation. We do not tolerate that in politics, and there is no reason why we should tolerate it in our public media.
Under my private Member’s Bill, which is due for consideration on 25 November, the BBC would have to set out an annual plan and licence fee payers would vote. It is quite astonishing that licence fee payers had no say over the appointment of Chris Patten, whatever his merits might be. To those who say that voting would mean a decline in quality, I say that that attitude is mixture of ignorance and snobbery—ignorance because there is a market for quality, as Classic FM and other quality media show, and snobbery because that is like saying that the public should not be free to choose for themselves.
Mine is not a radical proposal. Company shareholders have the right to hire and fire their boards. Residents have the right to elect their MPs and councillors. Given that we are supposed to be the BBC’s owners and are compelled to pay for it, we should democratise the licence fee immediately and give licence fee payers the vote.