Moody’s downgrade of the UK is a sign that austerity has failed.
The UK was specifically reprimanded because debt will continue to rise in the UK until well into the next Parliament. That fact alone is enough to show to the man on the Clapham omnibus that austerity isn’t working.
If we borrowed more, much more, then we wouldn’t have as much debt. That’s basic economics which even neoliberal “thinkers” like Tim Worstall cannot deny. If you need me to explain this, then you shouldn’t be pretending you know anything about economics because clearly you are an ignoramus.
As that is the crux of my argument, any sophists who wish to dispute my conclusions should perhaps consider that simply saying I am wrong is not a form of argument, it is just resorting to ad hominems.
So with less debt through increased borrowing and much more spending Moody’s would have to put us back up a rating, if not two.
But we also need to show Moody’s that we are a moral country. Despite HMRC giving out estimates showing that the size of the tax gap is reducing, it obviously isn’t. I haven’t bothered calculating my tax gap for the past five years but I know that it will have gone up.
How do I know this? Well my expectation of tax avoidance has risen so it is certain that my tax gap, which is calculated on an expectation basis, will have increased.
The IFS have recently endorsed my work by suggesting that it is most “likely” the best tax gap around (“possibly by a wide margin”). So, given that I’m probably right about the gap increasing exponentially, we need to consider that there is more money than we thought.
By introducing my GRAPIST and investing in call-centre staff at HMRC we can ensure that no piece of tax avoidance goes unpunished.
My GRAPIST would have the advantage of making huge sections of the legislation redundant. Instead of consulting the law, you would make out a blank cheque to HMRC and send it to them. Then, they will send you your tax bill and ask you for a cheque for that amount, having cashed the blank cheque for a sum compensating them for their time and effort in determining your tax due.
By taking the “self” out of “self-assessment”, we can ensure that we have enough money coming in to guarantee that we can borrow the even more money that we need to reassure the like of Moody’s that we are going to reduce our debt by borrowing more.
This will, of course, require a huge number of staff for HMRC.
This is why I intend to campaign for a new form of conscription. Instead of being drafted into the army, all school-leavers will be required to train and work as a tax inspector for five years.
We cannot have unmotivated members of HMRC so they will initially receive an intensive six month residential course on the morality of the tax system and why The State is good. They can then be segregated into specialisms for technical training.
We will, of course, predominantly need inspectors who understand the threat posed by multinational entities, so most of these will be trained for corporation tax divisions. But those without the intelligence to understand a single aspect of this incredibly difficult form of tax (of which I am the most renowned expert of all aspects) can do something a bit simpler, like stamp duty land tax or VAT.
But the starting point for all of this is the rejection of austerity. None of this can be achieved without first accepting that it is morally inexcusable to attempt to bring our spending under control.
We cannot control our spending.
We must not control our spending.