Small state is a tax dodgers dream…

Darrell Goodliffe Posted by Darrell Goodliffe
Monday, 21st December 2009

The Guardian this morning has a breathtaking story which continues the saga of the Conservative Party and the dodgy tax dealings of its allies. It says that the Taxpayers Alliance which campaigns against the ‘misuse of public funds’ has its hands in the public till through a ‘research arm’ which is set-up as a charity and therefore can claim Gift Aid on its donations.

"In one example, Midlands businessmen said they channelled funds through the Politics and Economics Research Trust at the request of the Taxpayers’ Alliance after they asked the campaign group to undertake research into policies which stood to damage their business interests."

So, what we have here is a clear and graphic illustration of what lies behind the ’small state’ agenda. It isn’t the empowerment of individuals to free them from the ‘tyranny of the state’ but it is the enabling of primarily business interests (but also wealthy individuals) to escape the ‘tyranny of taxation’. If the state is ‘rolled-back’ then it will naturally benefit these people as it will be less empowered to detect abuses and actually levy tax.

Advocates of the state and its potential should learn from their opponents who successfully present the matter in a way that is appealing to people's sensibilities. We should make our case in a way which also exposes how a small state protects the vested interests of the wealthy and is designed not to empower people but to enable those people to escape their social responsibilities when it comes to tax.