Recommended reading on the Panama Papers

I’ll admit, the Panama Papers issue is a teensy bit over my head. Fortunately the internet is full of smart intelligent people, and we’ve all got our own areas of expertise – so I humbly direct you to two excellent pieces of writing on the matter.

At Corner Politics: A note on the Panama Papers

Effectively most of the world is in slavery – forced to work for low wages, no benefits, no holidays, no education because apparently companies cannot afford to pay them.

Don’t forget that by spending up to 90% of our income on goods and services, we are enabling these people to horde incredible amounts of wealth. Those born into this wealth will never have to work as hard as we do and we will forever be chastised for not working hard enough and for being jealous and envious.

And at Scoop, Gordon Campbell writes on the political tokenism of the government’s response to the Panama Papers

Let me make a wild guess. When he reports back on June 30, we can be pretty sure that Shewan will find that there is much to admire and few causes for concern in the New Zealand rules to do with foreign trusts. Let me also bet that Shewan’s analysis will limit itself entirely to the formal framework – it will be an “on paper” evaluation – and will not examine how the system works in practice. How the system actually works is the sort of thing that can emerge only if and when a public inquiry was held, and people were invited to come out of the woodwork.

Click on through and read both posts in full.

Make the bludgers pay their fair share

Few things in this world make me eyeroll as strongly as the quibblers who jump up whenever you point out the discrepancy between the amount of money lost to benefit fraud – which our government pursues like a greyhound hopped up on E – and the amount lost to tax evasion – which isn’t nearly such a big deal, unless you’re a tradie, in which case you get doomsday language like “HIDDEN ECONOMY” slapped on you.

“But it’s different!” the quibblers cry. “Tax evasion is legal!”

As though “legal” is the same as “ethical”.

As though this doesn’t just prove how strongly the system is rigged – as though the loopholes aren’t there for a reason. As though the grey areas just evolved naturally.

As though all those just-legal-enough mechanisms are coincidentally only accessible to the people who are already wealthy.

As though the way we talk about tax and welfare aren’t designed to make this all seem okay.

That’s why I got a bit cheeky in the title of this post. When you saw it, who did you think I was talking about? Who do we usually frame as “bludgers”, and who do we usually assume isn’t paying their “fair share”? When politicians talk about people “taking responsibility”, do they mean the people with money? Or the people without?

Here’s the radical idea. Tax isn’t a burden. It’s one of the contributions we all make (yes, including people on state benefits) towards maintaining our society. Towards having strong infrastructure and free healthcare and education and a social safety net for people who need it.

The right like to scream and moan about the wealthiest 15% paying 75% of taxes – but it’s rubbish. What they love to avoid mentioning is that 1% of people in this country own 16% of everything while 50% of people own 5% – and they’d die before acknowledging that the 50% are the ones doing the actual work, while the 1% drain off the profits like leeches.

When it comes to lamenting the poor little rich boy who has to pay tax, there’s plenty of numbers and statistics to justify the status quo. When you ask the government how many kids they are letting go hungry because there aren’t enough jobs for their parents, and the jobs that do exist are paid poverty wages – oh no, that’s too difficult to measure, they say, we can’t do anything about that.

The truth is this. The rich aren’t paying their fair share to keep our country running. And even if they stopped using their wealth and power to dodge the spirit of tax law, if not the letter, they still wouldn’t be paying their fair share, because the tax system has been set up to benefit them.

This is a conversation the left desperately need to stop running away from, especially if we keep letting the first question for any progressive policy be “but what will it cost?”

Let’s just stand up and say it. Yes. It will cost a hell of a lot to institute a universal basic income, or raise benefits to a survivable level, or rebuild our health system. But we won’t be paying for it – those dickheads over there, who have been bludging off other people’s hard work and living the high life through fancy accounting tricks will. Because for too long they’ve dodged paying their fair share and it’s time they took some responsibility.

Let’s stop the bludging. The filthy rich have spent decades stockpiling the wealth other people worked to create, exploiting our country’s social support systems to enrich themselves. It’s their turn to pay the price for a strong, healthy democratic society. They won’t be impoverished by having to sell off one of their yachts or settling for just two investment properties. And they’ll benefit, as they always have done, from being able to do business in a country of healthy, educated, happy, productive people.

It’s really that easy. We just have to change the conversation.