Tag Archives: United Kingdom

How public sector unions cause tax rates to increase

Let’s take a look at the UK economy after over a decade of rule by the socialist Labor party.

Here’s an article from the UK Telegraph about the pensions of unionized public sector workers.

Excerpt:

It is estimated that, on average, private sector workers would need to put 37pc of their salary into their pension to match the retirement income paid to a public sector worker on a similar wage, if you believe a report by accountants PricewaterhouseCoopers.

Even public sector workers on modest final salary schemes might be surprised to learn how much they would need to save if they were in the private sector.

To get the average civil service pension of £5,928 a year you would need a pension pot of £189,151. The average NHS pension of £6,931 is equivalent to a pension pot of £221,155 and the average teachers’ pension of £9,358 is equivalent to a pot of £298,596, according to Hargreaves Lansdown, the financial adviser.

[…]The figures showed that average total pay, including bonuses, in the private sector in February was £451 a week. Excluding bonuses it was £418 a week. In the public sector the corresponding figures were £462 a week and £459 a week. Public sector pay, on average, is also rising at twice the rate of private sector wages.

Government workers have pensions and salaries that are higher than in the private sector, and those costs have to be paid by private sector workers who actually generate revenue and pay taxes. Public sector employees don’t actually have to do any work for the most part, (excluding things like military, etc.). People only work when they have customers to please, who can choose them or choose a competitor. Government has no competitors, and so they really don’t need to work hard to please a customer.

Another UK Telegraph article explains who pays for public sector union pensions.

Excerpt:

By 2015, almost £10 billion of public money will be spent every year supporting the retirement of millions of public sector employees – up from £4 billion this year, the independent body said.

[…]In 2010-11, the amount spent by the taxpayer on public sector pensions will be £4 billion, rising to £5.5 billion the following year, the report said.

The cost will then rise, on average, by 20 per cent each year until the commitment reaches £9.4 billion in 2014-15. This equates to almost £400 for each of Britain’s 26 million households. The sharp increase, according to the Treasury, is a result of Britain’s ageing population.

[…]There are more than two million public sector workers receiving pensions from “unfunded” schemes.

The schemes are heavily supported by the taxpayer, with employees generally contributing less than their counterparts in the private sector.

And another UK Telegraph article explains how taxes on the productive private sector will have to rise to pay for the pensions.

Here’s one of several proposed tax increases:

We already know that [the capital gains tax] is due to increase, said Grant Thornton, although we don’t know what new rate or rates will be. “We do know that it will be more in line with income tax, so it could go up to 40pc, but the option of taxing up to the highest rate of 50pc has not been ruled out,” the firm said, adding that the measure was “likely to go down like a lead balloon” with investors with share portfolios and anyone with a second home.

Any raise to the capital gains tax is a direct assault on capital investment, and will damage the economy more than raising consumption taxes. The worst thing that you can do in a recession is to punish investors and private businesses. You end up losing jobs, which decreases your tax revenue even more.

And they are going to raise consumption taxes:

The Chancellor may face an “irresistible temptation” to increase the rate of VAT to 20pc now that he has had the opportunity to review the country’s books, said Grant Thornton. The standard rate of 17.5pc is relatively low relative to other EU countries and many economists predict a rise to 20pc, which would cost someone on average earnings about £150 a year.

That one will hit the poor as well as the rich.

And one last UK Telegraph article to explain how the recession has hurt men most.

Excerpt:

Malcolm Hurlston, chairman of the [Consumer Credit Counselling Service], said: “Men have been hard hit by the recession and are emerging as the new underclass. Debt alone is no longer the problem. It is loss of income and other rising costs.

“This deterioration in the economic circumstances for men, still the main breadwinner in most homes, has serious implications for many households.”

The charity said it had seen the number of men contacting it for help soar from 146,00 in 2007 to 221,000 last year, a 51pc jump.

It added that the number of women seeking help had increased by only half this amount over the period, although women were still more likely to contact it than men, accounting for 52pc of its caseload.

Men who contacted the charity during 2009 owed an average of £26,957, down from nearly £30,000 in 2008, but still significantly higher than the £21,915 that women typically owed.

The main reason men gave for getting into debt was a fall in their income, with this cited by 26pc, while 23pc said they had become unemployed or been made redundant. A further 20pc of men blamed their situation on overcommitting themselves on credit.

When one group of people vote themselves higher benefits without any additional productivity, some other group is going to be taxed to pay for it. And higher taxes lower incomes and produce unemployment. The UK is replacing working men with big government dependency.

Conservative MEP Daniel Hannan admits he was wrong to support Obama

Conservative MEP Daniel Hannan

You all remember Daniel Hannan, who chastised the Labor Party for spending the UK into oblivion, right?

Here’s a refresher:

Here are more videos dealing with the aftermath of that rant.

But yeah, like the title of the post says, he supported Obama in 2008.

Well not any more. Check out the latest from the UK Telegraph.

Excerpt:

The credit crunch occurred during the dying days of the Bush administration, and it was the 43rd president who began the baleful policy of bail-outs and pork-barrel stimulus packages. But it was Obama who massively extended that policy against united Republican opposition. It was he who chose, in defiance of public opinion, to establish a state-run healthcare system. It was he who presumed to tell private sector employees what they could earn, he who adopted the asinine cap-and-trade rules, and he who re-federalised social security, thereby reversing the single most beneficial reform of the Clinton years.These errors are not random. They amount to a comprehensive strategy of Europeanisation: Euro-carbon taxes, Euro-disarmament, Euro-healthcare, Euro-welfare, Euro-spending levels, Euro-tax levels and, inevitably, Euro-unemployment levels. Any American reader who wants to know where Obamification will lead should spend a week with me in the European Parliament. I’m working in your future and, believe me, you won’t like it.

But it’s not just domestic policy that infuriates him, it’s foreign policy:

All these things are minor irritants compared to the way the Obama administration is backing Peronist Argentina’s claim to the Falkland Islands – or, as Obama’s people call them, “the Malvinas”. British troops were the only sizeable contingent to support the US in Iraq and Afghanistan. We have fought alongside America in most of the conflicts of the past hundred years. Yet, when the chips are down, Obama lines up with Hugo Chávez and Daniel Ortega against us.

Not that we should feel singled out. The Obama administration has scorned America’s other established friends. It has betrayed Poland and the Czech Republic, whose Atlanticist governments had agreed to accept the American missile defence system at immense political cost, only to find the project cancelled. It has alienated Israel and India. It has even managed to fall out with Canada over its “Buy American” rules and its decision to drill in disputed Arctic waters. Never has there been a worse time to be a US ally.

Indeed. Not only are we the economic laughingstock of the world, following quickly along in the footsteps of Greece, but we are despise by our former allies and our emboldened enemies, alike.

Taxpayer-funded polygamy in the UK, France and Canada

From Life Site News.

Excerpt:

When a Muslim woman was fined late last month in Nantes, France for driving while wearing a full face veil, the issue of polygamy burst into the spotlight when it was revealed that her husband had three other “wives.”

The incident has re-opened the debate in Europe over the dilemma faced by European governments with, on the one hand, aging native populations and below-replacement birth rates, and, on the other, burgeoning Muslim immigrant populations with customs incompatible with existing laws.

Objections to his alleged polygamy were answered by the woman’s husband, Lies Hebbadj, an Algerian-born Muslim, who pointed out that, in accordance with modern French customs, he does not have four wives but one wife and four mistresses, plus 12 children between them.

“If one can be stripped of one’s French nationality for having mistresses, then many French could lose theirs,” Mr. Hebbadj, a halal butcher, said after consulting his legal counsel. “As far as I know, mistresses are not forbidden, neither in France, nor in Islam.”

Hebbadj reportedly became a naturalized French citizen after he married Anne, his French wife. But French Interior Minister, Brice Hortefeux, has said that Hebbadj could have his citizenship revoked if he his found to be practicing polygamy. Authorities are investigating whether he was legally married to the other women in civil ceremonies, and whether he was profiting from single mother welfare benefits the other women may have been receiving fraudulently.

The same thing is also happening in Canada and the UK.

Excerpt:

It was a rude awakening for British and Canadian taxpayers when news emerged this week to confirm that their tax dollars were being used to support polygamous marriages.

[…]British legislation from 2003 opened the door to the current situation by allowing multiple wives to inherit assets from a deceased husband. More recently, the government investigated claims that polygamists were taking advantage of the welfare system. It should have led to fines and legal crackdowns on abusers; instead it led to the creation of a new set of rules that allow polygamists to claim welfare benefits for more than one wife.

The government obviously wasn’t that proud of its innovative actions, since it acted quietly and without public consultation in agreeing to pay polygamists subsidies for additional housing and to grant additional tax benefits. Worse still, all payments bypass the wives and are given directly to the husband.

British citizens only found out about these changes when a newspaper broke the story last week.

At the same time, Canadian Muslim leaders admitted that hundreds of Muslim men in Ontario are now claiming welfare and social benefits for their multiple wives. This is welfare fraud. The system is supposed to prevent applicants from claiming welfare for more than one spouse, but the fraud works because they don’t check for independent applications from multiple spouses in the same household.

Under Muslim (Sharia) law, men are permitted to have up to four wives. If the paperwork is handled properly, that can put taxpayers on the hook for a huge monthly payment of social benefits.

I know that governments waste a lot of money, but this seems to me to be a particularly egregious example of the perverse incentives created by the welfare state. I have friends in Canada who are married with TWO children and are paying 50% of their income in taxes. Is this what they are paying for? It’s very frustrating to contemplate that traditional Christians are subsidizing polygamy. And abortion, too!

I believe in life-long married love between one man and one woman, because that is the best for the children. What do children who are raised in a polygamous marriage believe about women? Will they see romantic love being modeled in their own homes? It just wounds my heart. What is good for a man is to be in love with a woman and more than the feeling is the act of loving her alone, to the exclusion of all others.

The state should not be paying weak, cowardly men to degrade women like this. And with taxpayer money.

My view of love

My view of love and marriage is explained in the related posts. I’m a Christian, so I believe in chastity and romantic love. Notice how different that is from the secular and Islamic traditions. Christianity invented chivalry – romantic love is a Christian ideal. When Christianity declines, romantic love declines.

Related posts on chastity, chivalry, courtship and marriage