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Work towards the closure of all tax havens

“Tax havens allow the wealthy unscrupulous to avoid paying their share of the costs of a national infrastucture while benefitting from the use of it ”

2. How does it fit with Compass’ core beliefs of equality, solidarity, democracy, freedom, sustainability and well being?

A society with a sense of solidarity is unachievable when the wealthier can afford to avoid paying taxes though the use of tax havens. The use of tax havens make it possible for the rich to get richer and widen the gap betweeen rich and poor. While the rich can then afford to pay privately for resources, like health and education, the poor can only afford what is provided socially. Public institutions become empoverished through lack of goverment spending and the well being gap becomes larger. Studies show that an unequal society is a less happy one.

3. How does it build the institutions of social democracy, like social groups and collective and cooperative forms of ownership and control?

Social democracy is an ethos not simply a collection of institutions. Those institutions, like tax havens, which help create an increasing gap between the rich and the poor undermines that ethos. Institutionally, if wealth accumulates in a small number of hands, it means that the ownership will also accumulate in the same number of hands. The same hands will manipulate democracy for their own ends, ie paying lobbyists and bribing politicians with the aim of increasing their wealth still further.

4. How much will it cost or raise and where will any cost come from?

Find skilled lobbyists. If they are ethically minded they would accept a lower salary for carrying out a public good. These lobbyist have then to work on governments, both of the tax havens, and those countries that use them. There should also be a huge advertising campaign, naming and shaming those who use tax havens and educating the public as to why it matters. This is a long term project. Ultimately all governments would benefit from the abolition of tax havens (except the tax havens) Perhaps the tax havens would need a subsidy to find another income.

5. Which groups in the electorate are likely to support or oppose this measure? Is there any polling evidence you have on this?

There is no polling evidence to show what the voters think about this. Most newspapers seem to assume that nobody wants to pay tax instead of making an effort to show how taxation pays for the public good. Those who will oppose this measure will be the bankers and accountants who use the tax havens, those wealthier enough to use the above.

6. Is there a place or country where it’s worked? Please provide some information.

I would have to see whether high tax countries like Norway and Sweden have banned the use of tax havens. BUT just because/if no country has tried it, doesn’t mean that we should not be working towards a situation where wealthy individuals can get away without paying taxes.

7. What are the three main arguments in favour/against it?

1. Abolishing tax havens globally would decrease tax avoidance and increase tax revenue.

2. If tax revenue increases, there is more government money to spend on the public good.

3. If more money is spent on the public good, there is less reason for the rich to go private in health, education etc and a more egalitarian society emerges.

This entry was posted on Sunday, February 15th, 2009 at 8:47 pm and is filed under Wellbeing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.