This table has just been published by the OECD and shows the “tax wedge” taken from employment earnings for all 34 OECD countries.
The latest report estimates fraud and error levels in the benefit system in Great Britain, published by the Department for Work and Pensions (DWP) today, found that benefit fraud accounts for just 0.7 per cent of the welfare budget.
The files released from the International Consortium of Investigative Journalists (ICIJ) may finally put faces to the offshore accounts scandal whose numbers are quite astounding.
A recent report by the Tax Justice Network found that the equivalent to the total combined GDP of U.S. and Japan is being hidden away by those rich enough to use offshore accounts.
Within just three months the OBR’s forecast for growth in 2013 has been halved. The economy now looks set to be smaller at the time of the next election than it was when the crash hit in 2008 and our recovery remains the slowest in over a century. When the government took office they thought this year would see the economy expand by 2.9 per cent – their own forecasts now show we won’t reach that rate of growth by 2017.
The economic case for a new approach has never been stronger.
The budget will increase inequality and the bias against the small business sector. It is another opportunity lost, but if you drink 1,000 pints to drown your sorrows you will save £10. Doesn’t that say it all?
The Organization for Economic Cooperation and Development (OECD) – a body that advises Britain and other European countries on tax and spend policies – has been accused of enabling global corporations such as Google Inc. (GOOG), Hewlett- Packard Co. and Amazon.com Inc (AMZN) to dodge taxes by shifting profits into offshore subsidiaries.
Posted in Sustainable Economy
Also tagged OECD
Previously describing tax avoidance as “morally repugnant”, Osborne has commendably acknowledged the extent of the problem as a drain on public finances. Unfortunately the key weapon in Osborne’s arsenal to tackle the problem – the General Anti-Abuse Rule (GAAR) – is far too narrow to prevent the major headline-grabbing schemes which have emerged in recent months.
The government claim to be taking tax avoidance seriously, but so far the rhetoric has been far removed from reality.
The chancellor George Osborne has written in the Guardian that he is committed to ending tax abuse by multinational companies. He needs to show he means it.