A tax on all our houses

THE last time the government set out to introduce a new tax it was given a simple name that was easy to understand: the Community Charge. It was introduced to reform the way local government was funded.

Instead of being a tax per property as the Rates system was, it was a tax “per capita” (literally, each head) so it was called the

Poll Tax.

Resentment among the population soared and riots broke out at the end of March, when the community charged. At the police.

It marked a turning point in British politics. By November that year, the deputy PM’s resignation speech led to a leadership challenge. Less than 10 days later, the PM resigned.

Thus was the fall of Margaret Thatcher in 1990.

Subsequently, John Redwood MP was given the job of introducing the Council Tax system which we know today. With an average 97% collection rate nationally, it’s the hardest tax to avoid or evade paying.

Negative Rate Support Grant

No, you didn’t mis-read it, the name of the new tax is four words of dubious meaning but unmistakeable intent.

And it’s coming here first, to our borough, in less than two years time.

Make no mistake, like any new tax, it’s a case of “thin end - long wedge” to part us from our money. Just as happened with income tax when it was brought in over 200 years ago at under 1%. These days, it takes up to 60% of your income.

Negative RSG sounds a bit like the removal of the food additive MSG and that’s a good thing isn’t it?

Not really, but it does compare favourably with your dentist saying – “trust me, this won’t hurt a bit”. You know it isn’t going hurt a bit – it’s going to hurt a LOT!

Orwell’s “double ungood” doesn’t even get close, so to understand what our politicians are talking about, it’s worthwhile reviewing the current situation and the current thinking.

Nobody likes a tax collector

In case you’ve not noticed, central government in Westminster hasn’t been doing so well lately in collecting taxes.

It seems to have given up on trying to tax the wealthy or the big companies and instead has turned on those less able to afford to pay, i.e. us lot.

You can tell things aren’t quite right when the regional CEO of an American company gets paid more per year than his company pays the UK government in tax for that year. Tax evasion? Absolutely not, that would be illegal. Tax avoidance? Perish the thought, we pay every penny of the taxes we legally owe.

This time, the dodge of introducing a new tax is being done by people who’ve had time to think about it. A lot of time.

Well thought through?

Firstly, the new tax is being introduced locally, not centrally. Therefore central government can quite legitimately claim that it isn’t them and leave local government to take the blame.

Secondly, the new tax has been given a very complicated and carefully thought out name. It is absolutely truthful and correct, at the same time as being so well camouflaged that you’d be forgiven for wondering if it’s a tax at all.

Thirdly, the new tax is being brought in only in those areas of the country that are “wealthy” and “can afford it anyway, can’t they”?

Fourthly, the new tax is being introduced in a minority of local councils, a small minority at that.

Fifthly, the money from the new tax is promised to the majority of councils who aren’t having to pay it (divide and conquer).

Sixthly, the new tax is designed so that for councils who’ll continue getting the Rate Support Grant it isn’t in their interests to complain about the unfairness of the new tax. They’ll be picked off later, one by one.

Seventhly … Well, you get the point, this doesn’t just stop at one or two bits of artful preparation.

The new tax has been so well thought through that it’s going to take a different type of riotous behaviour to get it changed.

The Last Word

On this occasion, don’t write to your local MP. It wastes your ink and annoys the MP.

Your local councillor will welcome you getting in touch with them. Especially when you ask them to explain what they’re going to do about the new tax (“Negative Rate Support Grant” lest we forget).

Unless of course you like having new taxes thrust upon you. If so, then for this tyranny to prevail, you need do nothing.

It’s all being done to you. Sorry, for you.