From The UK Libertarian.
Davy, the UK Libertarian, hoists moralistic tax-happy statists on their own petard. Logical, potent, and apt, if emotionally-oversaturated at times.
[WARNING: The following article contains images that some people may (and should) find disturbing. If you don’t want to see fairly graphic images then stop reading now or scroll down with a soft touch]
David Cameron has described Jimmy Carr as “Morally wrong” for allegedly paying as low as 1% on his income taxes thanks to a scheme known as K2, advised by his accountant as perfectly legal and used by celebrities on both the left and the right.
But he’s not not behaving unethically, in fact, morally, he’s in the right.
To explain why, I will be asking you to stick with me through a seemingly unrelated tangent but, if we’re lucky, it will tie up in the end.
The following earnings are made up for the sake of simplicity but the logic holds true whether you scale up or down:
To begin let’s suppose Jimmy Carr is a model tax-payer and let’s say he earns £1,000,000 gross profit in the 2012 tax year. Without any exemptions and filing purely as an individual he would expect to pay close to 50% directly to the Inland Revenue. At that rate he is handing over approximately £500,000 to David Cameron’s government.
Let’s take a look at some of the ways that £500,000 will be spent once the government has its (apparently righteous) hands on it:
At least £44,000 of this half a million will go towards “Defence”. The quandry for the informed and ethical man (but not the amoral/immoral) when pondering this contribution, however, is that “Defense” is really just a euphemism for Offense. Still etched in the memories of anybody who takes a passing interest in politics (regardless of which side of the fence they fall) is that spark of defiance in February of 2003 when almost a million people marched through London in protest against the proposal to wage war against Iraq. They chanted “No more war!” They screamed the justification was immoral. Some even cried for people they had never met, guessing before the fact just how horrific the consequences could be. They were right.