London's tax privileges - Hutton

Chris Burford cburford at gn.apc.org
Sun Dec 12 08:19:18 PST 1999


Will Hutton, editor of the Observer, and zealous critic of finance capitalism, in today's paper:-


>>>
If you don't believe the markets in the City are rigged, then what do you think Blair and Brown were up to, risking an impasse at the European summit? The New Labour duo were defending the tax-haven status of the City, built up over 40 years, which permeates our tax system. The arcane distinction between domicile and residence; the exemptions, allowances and expenses that can relieve capital gains and corporation tax, and now the fight to prevent the imposition of a withholding tax - all are about giving privileges to finance and those who work in it, privileges not available to the rest of us.

The Europeans are right: there is no reason why the dividends and interest paid to the internationally mobile should be excused the tax that domestic populations pay. Business will not leave London as the hysterics claim; only Switzerland presents a challenge - and it doesn't have the skills or capacity to accept the range and size of business. Politically, it will not risk its relationship with the EU by exploiting some short-term tax break. <<<



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