Thieving bloody (fill in the blanks)

It appears that this coalition has an agenda of vilifying different groups and attempting to demonise them to the rest of us.

Today’s group of evil, society-wrecking scum are plumbers.

You know the bastards that come out and fix your waterworks, burst pipes and blocked toilets.  Or install your gas central heating.  You know, pointless shit like that.  That stuff you can obviously do for yourself.

David Gauke, a treasury minister (hard to believe, I know) says these villains are making the rest of us proles pay higher taxes by sticking our tenners and twenties in their hip pocket and not always telling the taxman.  How dare they give us a discount and not pay the tax due to HMRC.

Those bastards are the root of all evil, they are the black economy.  Just wait you sparkies, you’re next.

What a load of utter drivel.

The amount lost to plumbers (of which there are 22300 registered (and maybe half again not registered in the UK) must be immense.  IF they all avoid a little bit of tax every week (say one cash in hand £200 leak or the like then the amount of tax lost to a leaky economy is…

£200  (job paid cash for the purposes of evading tax) – costs (materials / overheads / petrol etc) 100 est  = £100 taxable profit so £22 (ish) Income tax.

(Assumption here is EVERY plumber evades a £200 job EVERY week – obviously they are all at it)

so 22 x 35000 x 50 = £38.5m per year.  (or 0.11% of the tax gap figure used in the article (35bn))

OMFG the economy is fixed.  Well done Mr Gauke and I thought it was people like Vodaphone, Arcadia, GSK, and banks who were the problem.

What do these plumbers do with this cash?  Aha says mr Gauke – they hide it offshore obviously. (needs to get out more)

They spend it.  And they pay vat on what they spend it on (usually).  Plumbers will probably have a marginal propensity to spend of about 0.95 (in other words they’ll spend 95% of their earnings)

What would this Government have done with that money from Income tax? given it to millionaires in a tax cut?  perhaps? Or used it to pay down the deficit?

Now, the ridiculousness of this announcement attacking plumbers is the same approach they have used to attack other groups.  Teachers are scum (obviously), The disabled are all scroungers and cheats, The Unemployed are benefits junkies, The OAP’s are hogs with their nose in an entitlement trough.  The list could go on and on.

Gauke then tries to mire the BBC in a smearing of their policies of paying some people through service contracts.  The very same thing that hundreds of execs are doing in the Civil service.  If they are using these contracts to solely avoid taxes then by all means get after them.  Do the Civil service first I would suggest.

This Coalition Government is as rotten to the core as the last tory government.  Divisive and with the inner belief that the proles are the enemy.  Divide and conquer is the approach from this manky, illegitimate government, ramming through a medicine that the electorate did not vote for.

As a college lecturer, we have had our turn (lumped in as substandard with the teachers).

Next week it might be your group….

(Gauke might go after the paperboys, tax avoiding wee shites…)


Posted on July 24, 2012, in Political matters and tagged , , , , . Bookmark the permalink. Leave a comment.

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