Fun Online Polls: Xmas decorations & Philip Hammond

OK, I shall close the fill-in FOP on Xmas decorations. By now, half of us have seen some and half of us haven't (or have managed to ignore them to the point of not even noticing them) and return to more interesting matters.
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Defence Secretary is normally seen as a very senior job, certainly more senior than Transport Secretary, so on the face of it, Philip Hammond was promoted once the totally not-corrupt-at-all Liam Fox resigned in such an honourable and dignified fashion last week. Interestingly, the defence lobbyists seem to have got their knives out for Hammond already, but hey.

Now, as it happens, Philip Hammond was originally pencilled in by the Tories as Treasury Secretary (or 'Chief Secretary to the Treasury' or whatever the exact fancy title is) but was shuffled sideways because they had to give the job to a Lib Dem as part of the Coalition negotiations. The first incumbent David Laws was booted out because of some expense-claim shenanigans and was replaced by another Lib Dem, Danny Alexander.

Despite all this, and having been made Transport Secretary at short notice, Philip Hammond seemed to a) know what he was talking about and b) be enjoying the job. I just can't help liking him and his ve-e-ery dry sense of humour (despite him being an über-Home-Owner-Ist and all, at least he was prepared to go into battle over the HS2 route).

But is it really a promotion? Who really wants the job as Defence Secretary?

I'd far rather be Transport Secretary and really achieve something - raise the speed limit on motorways, turn off the traffic lights, build a few new railway lines, allow a new runway to be built at Gatwick or Luton, cut bus fares, whatever - than be blundering around in the MoD morass, there is no concept of 'value for money' in that department, it's all about massive vanity projects and nothing to do with what really benefits the UK. As Transport Secretary, you can quietly plan out the next few years and work towards a target; as Defence Secretary you are pushed and pulled every which way, and by and large, you usually end up resigning and being hated by all and sundry.

So that's this week's Fun Online Poll: "Which job would you prefer... Minister for Defence or Minister for Transport?"

Vote here or use the widget in the sidebar.

Killer Arguments Against LVT, Not (154)

From today's FT:

“If we do get rid of the 50p [income tax] rate we need to make sure there is something else levied on higher rate payers. Lib Dems think there should be a new way of taxing wealth,” one senior Lib Dem aide said. Talk of lowering the top rate of tax has triggered a dispute within the coalition, with Danny Alexander, the chief secretary to the Treasury, saying advocates of the move were “living in cloud cuckoo land”. (1)

But the Lib Dems expect it will happen, and are concentrating on coming up with replacement taxes that would raise extra revenue and win the support of voters, among whom the 50p rate is popular.(2) Mr Cable has long favoured the option of a “mansion tax”, levied on the sale of high-value homes, although others inside and outside the party have called it overly-complicated and unworkable...(3)

David Laws, the former chief secretary to the Treasury, and one of Mr Clegg’s closest political allies, is opposed to all these forms of wealth tax (4), saying they amount to double taxation after income tax has already been raised. (5)

1) Why? We managed perfectly well with a top income tax rate of 40p until a year ago, and according to HMRC estimates, it only raises about £1 billion. According to others, the top rate of 50p is past the top of the Laffer Curve and reduces overall revenues.

2) Have we really sunk this low? The 50p top tax rate on wealth creation is 'popular' but such is our reverence for 'people in big houses' that a tax on rent seeking and unearned wealth wouldn't be?

3) No it wouldn't be, not compared to the hyper-complexity of the current tax system, or the complexity of the 50p top tax rate alone (which requires a whole raft of anti-avoidance provisions to make it anywhere near enforceable), if anything it would be as simple as, or simpler than Business Rates in the UK or Domestic Rates in Northern Ireland. And given that any tax on residential land and buildings could and should replace other taxes, it would lead to a massive reduction in the overall complexity and unworkability of the tax system - the more taxes you replace, the easier it gets (including politically easier, as there'll be a minimum of people who'd lose out on Day One).

I sketched out a possible system for taxing residential land and buildings which ended up being published on Labour Left (of all places). If you want to get rid of the 50p top tax rate as well, or even the £30,000 non-dom levy, you just have to increase the target receipts from £42.5 billion per annum to £43.5 billion, hooray, yet more fiddly little taxes and jealousy surcharges out of the window.

4) A tax on the rental value of land is not a tax on wealth, it's a user charge. In the same way as a tax on petrol is not a tax on the wealth tied up in your car (VAT is), it's a tax on road use.

5) So if you pay 50% income tax, that's OK, but if you were to pay 40% income tax and approx. 5% of your income in LVT, that's double taxation, is it? Since when does "paying less tax" amount to double taxation?

One laws for him, one laws for everybody else...

Damn! Nazi fighter pilot look-a-like replaced with Scottish blob.

I can't be bothered drawing him again, so I'll just repost this one, seeing as of how he just hit the headlines...

Supply and demand

From The Metro:

Just a third of students expect to find a ‘graduate level’ job after graduation, researchers said. ‘With a record number of students due to complete degrees in the coming weeks – and tens of thousands of last year’s graduates still looking for work, there is widespread concern on campus that competition for graduate jobs has never been fiercer,’ said Martin Birchall of High Fliers Research, which commissioned the study... This year’s graduates will also have average debts of about £17,900, up from an average of £11,600 in 2008.

From The FT:

Mr Darling claimed that Mr Laws's package would undermine a "fragile" recovery... The former chancellor also claimed that the scrapping of the child trust fund and a cut of 10,000 additional university places went far beyond his promise to curb "waste and inefficiency".

So we have a massive surfeit of students, who can't get the kind of job they'd hoped for, but who still end up with 'average debts of £17,900', and The Badger is complaining that the Lib-Cons didn't increase (let alone cut) the number of such people by ten thousand?

... 98, 99, 100! We're coming! Ready or no-ot!