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. <<<