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TaxPayers' Alliance Bulletin - 14th January 2011 2020 Tax Commission Next week the newly formed 2020 Tax Commission will meet for the first time. A joint project by the TaxPayers' Alliance and the Institute of Directors (IoD), the 2020 Tax Commission will set out a plan for how we want Britain's tax system to look a decade from now. The Commission will embark upon the most thorough investigation of the potential for ambitious tax reform in recent memory, gathering submissions and hearing evidence from tax experts, academics and business leaders. There is a pressing need for tax reform; spending cuts have been at the forefront of the political debate recently, with cuts being a focal point in the media too; now it's time to turn to our tax system. The Commission will assess the economic and moral case for radical tax reform. You might remember our previous collaboration with the IoD in 2009, on a research paper detailing how the government could cut £50 billion from public spending. Many of the suggestions from that report have since been made policy by the Coalition and we hope to achieve the same success in the area of tax reform. Allister Heath (Editor, City AM) will chair the Commission and David B. Smith (Chairman, IEA Shadow Monetary Policy Committee; Academic) will be Chief Economist. You can find a full list of Commissioners and find out more about the 2020 Tax Commission by visiting our dedicated website: www.2020tax.org Lord Lawson, former Chancellor of the Exchequer, offered his endorsement of the newly formed 2020 Tax Commission: “Britain has enjoyed highly beneficial results from ambitious tax reforms in the past. It is vital that the arguments for lower, simpler taxes are made again and that as the economy and the public finances recover we have a plan for a better tax system. By 2020, we should be in a position where we can start to take great steps and work to deliver a tax system that will deliver economic prosperity. The work of the TaxPayers’ Alliance and the Institute of Directors in the 2020 Tax Commission can make a valuable contribution and help make that happen.” MP guilty This week the MPs' expenses scandal continued as Eric Illsley became the second MP to admit his guilt. Unlike Chaytor last week, Illsley ran for Parliament again last year, knowing he was guilty. The news that he could continue in his position even if he received a jail sentence meant it was time to speak out. We called for Illsley to resign and issued this statement from our Director, Matthew Sinclair: "Eric Illsley has admitted that he cheated taxpayers; whatever his sentence he should no longer be entitled to his parliamentary salary. The rules must be changed so that disgraced MPs like him are not still pocketing taxpayers' money. If he knew he was guilty, then he should have stepped down before the election and offered his constituents a fair alternative. He should never be allowed to stand as an MP again because he has admitted to abusing the public's trust so flagrantly. This situation highlights the need for the power of recall, so that taxpayers can hold politicians properly accountable for their actions, and get rid of them when they have wronged their constituents." Our comments were featured in the media and Illsley later announced that he will resign. The news that he deeply regrets his actions and will now be leaving public office is welcome. This is not the last you'll hear of MPs' expenses though and there is more work for us to do. We will be keeping an eye on IPSA, the new body regulating MPs' expenses, as it responds to a public consultation on its progress so far. In addition we are still waiting to hear the sentencing of Eric Illsley and the trials of the remaining MPs and peers accused of fiddling their expenses, one of those trials is scheduled to begin on Monday. Stealth taxes The front page of the Sunday Times last weekend was about councils that are raising charges instead of cutting spending. For example, charges on funerals, sports pitch rentals and gardeners' allotments are all being targeted for hikes. Of course, this comes at the same time as VAT and Fuel Duty hikes, which will hit taxpayers’ cost of living hard. It seems like some councils still haven’t accepted that they will have to cut spending – and as TPA research consistently shows there is plenty to choose from. The fiscal crisis was the result of huge and unsustainable increases in public spending over the last decade, so the solution is to reduce spending and local authorities should be working much harder to do this by cutting out waste and prioritising key services. They must stop looking at taxpayers as an easy source of income to plug the gaps in their finances. It is unacceptable to employ these stealth taxes. Our Research Director John O’Connell featured in the Sunday Times piece and we were quick to follow this up in the media this week, in print and broadcast. Campaign Director Emma Boon said on BBC Radio London that there was plenty councils could do without employing stealth taxes, and putting further pressure on taxpayers. In Lambeth this week, we have been alerted to taxpayer funded posters from the council proclaiming: “The Government have cut our money, so we have to cut services”. This is nonsense and shamelessly political, so we will keep working to show them that this is simply not true. Grassroots day - last chance! As we mentioned in last week's bulletin, on January 24th 2011 we are holding a free training session for our grassroots coordinators. We've had a fantastic response to this so far and are really looking forward to seeing you all; there are a few spaces for those of you who haven't booked yet. If you have been thinking about getting actively involved in campaigning in your local area this day could furnish you with the tools and know how to get started. You will be able to get first hand advice from some of the TPA team on how to use the Freedom of Information Act, how to build relationships with the media and tips on how to grow a successful branch from those who have done it. New, existing and potential coordinators are welcome, it will start at 1.00 pm at our offices in Tufton Street. If you would like to attend, please e-mail our National Grassroots Coordinator, Andrew Allison and he will send you more information: andrew.allison@taxpayersalliance.com Best of the Blogs Burning Our Money: Non-job of the Week - Andrew Allison with another non-job of the week Campaign: The real weight of public sector promises - Charlotte Linacre says we need to trim the fat and break an unhealthy addiction to handouts Economics 101: Cut taxes for low earners now, Mr Clegg - Rory Meakin calls on Nick Clegg to stick to his pledge to raise the personal tax allowance, and to do so sooner rather than later Grassroots: West Tyrone MLAs or Conceited Councillors? - Lee Canning on the cost of Northern Irish MLAs EU: To win Hugh’s Fish Fight, we need to end the EU Common Fisheries Policy - Matthew Sinclair writes about how it is vital to get rid of the CFP if we want to manage fish stocks better Campaign: Romanian politicians beware of raising taxes and drinking out of the Danube - Josh Mead on why George Osborne should beware of drinking out of the Thames Economics 101: Cameron can’t just talk to the big employers if he wants to see the UK economy create more jobs - Matthew Sinclair argues that David Cameron needs to look at the needs of small, high-growth businesses if he wants strong employment Grassroots: Sunday parking restrictions are wrong - Tim Newark wonders what impact introducing Sunday parking charges will have on Bath's beleaguered local retailers