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Sunday, 21st March 2010

Introducing the Nelson tax

Fraser Nelson 3:36pm

In the News of the World today, I propose a new tax on the rich: specifically, on ex-ministers who go on to earn a crust advising companies how to avoid the regulations with which they have saddled the British economy. I proposed this before the news broke about Byers and Hewitt etc, but their appalling story makes it all the more pertinent.

The Nelson tax should be above the top rate, and imposed on any activity such as giving speeches to the Chinese, lobbying, consultancy, etc. - anything which trades from contacts or reputation built up while serving the taxpayer. It would not be levied on activities which the ex-minister could plausibly claim he would have taken on anyway. So if Blair were to return to law, his earnings would be taxed at the normal rate. But if he trousers £20 million to £30 million (the estimates for his post-No10 income), then he'd pay it back.

The Nelson tax would also have another component: no "pension" should be paid before pension age. Blair, let us never forget, is disgracefully forwarded £64,000 a year as a "pension" at the ripe old age of 56. When you think of what his government did to pensions in Britain, this is verging on criminal. He also receives £84,000 of our money each year to run his personal office. Given the £4 million-odd he claimed for his book, and the damage he did to the British economy by letting the incompetent Brown run amok, you wonder just why he needs such a subsidy.

I propose denying former ministers any state money (including gold-plated MPs pension) for as long as their private income exceeds a certain threshold: three times the average salary of £70,000 a year. Now I wonder how many MPs would back that reform.

Filed under: Gordon Brown (906 more articles) , Labour (2014 more articles) , Patricia Hewitt (20 more articles) , Public finances (704 more articles) , Scandal (237 more articles) , Stephen Byers (9 more articles) , Tax (119 more articles) , Tony Blair (228 more articles) , UK politics (4910 more articles)

Blogs: Martin Bright | Susan Hill | Alex Massie | Melanie Phillips | Faith Based | Cappuccino Culture

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TGF UKIP

March 21st, 2010 5:06pm Report this comment

As I've said so many times before, if only Fraser Nelson were leader of the Conservative party instead of the present green, pc, priggish, posturing London ninny, I would be so glad to vote for them.

Rhuarc

March 21st, 2010 5:21pm Report this comment

Isn't it interesting that all the ones stung (Byers, Hewitt, Hoon) are Brown's enemies. I wonder if there was any Brownite input into the sting campaign (i.e. Whelan).

oldtimer

March 21st, 2010 5:23pm Report this comment

Nor, re Blair, should we forget the thoughtful way he succeeded in getting all his Parliamentary expense and allowance claims shredded before he left office.

If he comes back on the campaign trail, as suggested in the Sundat Telegraph, I hope that journalists will relentlessly pursue him with the questions:
(1) how much did he claim and
(2) why he felt the need to shred those claims.

Philip Painter

March 21st, 2010 5:23pm Report this comment

Will conservatives sign up to this, I wonder?

Chris

March 21st, 2010 5:27pm Report this comment

I would go further. No pension AT ALL. If they can earn in the private sector then they don't need my money. Their pension surrendered would guarantee many more pensions for those on low pay, you know, those ones Gordo raided...

Tom Pride

March 21st, 2010 5:37pm Report this comment

Seems you’re angry Fraser. But, don’t fall for Brownian Complexity, keep it simple.

Take a leaf out of their own Marxist / Maoist book – and make them pay for the bullet.

Gawain

March 21st, 2010 5:53pm Report this comment

Journalists should also ask Blair whether he currently pays full UK income and other taxes on all his earnings from whatever source and whether he has done so on all his earnings since he left office. The man is as slippery as a swarm of eels and has very expensive tastes. If there is a legal dodge he can use to avoid paying full taxes I would bet he's doing it !

Rex Burr

March 21st, 2010 6:38pm Report this comment

My options; don’t vote, vote for UKIP or vote Tory.
This proposal from a Tory based publication, along with the next item relating to James Tyler could sway me towards the latter option.
It’s a shame that Cameron’s pronouncements, which seem to be designed to ‘not scare the horses’, seldom have this effect.

Ken

March 21st, 2010 7:26pm Report this comment

Great idea. Sadly wont work.
They'll become non doms in a trice, al la Windrush Blair.

Tiberius

March 21st, 2010 7:48pm Report this comment

The trouble with your scheme, Fraser, is that it will drive all the best candidates for MPs abroad.
;

Moraymint

March 21st, 2010 8:08pm Report this comment

Oh f**k, there are days when I lose the will to live when reflecting on how our shameless political class screws us taxpaying serfs from arsehole to breakfast time.

We should hang the lot of them; they stink.

DavidDP

March 21st, 2010 9:06pm Report this comment

I know this is tongue in cheek, but still, little difference in targeting bankers to targeting MPs. I seem to recall you were against the former......

Noa Zrk

March 21st, 2010 9:43pm Report this comment

Fraser

An excellent analysis though your nuanced treatment of Cabinet minister's pensions, whilst recognising the wrong, doesn't begin to right it.

I would like to see a criminal offence of malfeasence in public office, encompassing abuse of that office whether as an incumbent or arising from it.

If our public servants don't know how to behave honestly we need to set standards for them.

Tiberius

Our best candidate MPs will move abroad?

So your argument is that we must accept their potential corruption and dishonesty as part of the Parliamentary process? despite the salaries and pensions we pay?
I would say that out of the 60m in the UK we can find a plethora of candidate MPs who offer ideals and honesty over the current 630 self serving troughers.

I propose denying former ministers any state money (including gold-plated MPs pension) for as long as their private income exceeds a certain threshold: three times the average salary of £70,000 a year. Now I wonder how many MPs would back that reform.

Andy Leeds

March 21st, 2010 10:27pm Report this comment

I have a much better idea. Those who seek and gain public office receive no remuneration whatsoever. You do it purely for the honour of serving the State. Same would apply in local councils.

Major Plonquer

March 22nd, 2010 12:30am Report this comment

Tiberius says: The trouble with your scheme, Fraser, is that it will drive all the best candidates for MPs abroad.

What a dumb thing to say. All the best candidates for MPs already live abroad and most have done so since 1997. Face facts. The dumb people left living in the UK eleceted a Labour government. Three times.

SO why don't you join us. Come to Asia. The jiaozi is fabulous.

Major Plonquer

March 22nd, 2010 12:59am Report this comment

I think we should REWARD some politicians for their services to society. For example, Gordon Brown saved the world. Brown should therefor be rewarded by being allocated a tax credit. By applying for his tax credit (a simple 38 page form) he would be eligible for a 50% reduction of the Nelson Tax.

In effect, I think we'd all like to see Gordon Brown in a Half Nelson.

Bickers

March 22nd, 2010 8:33am Report this comment

Average salary £70,000 - how about the voters' average salary which is nearer £20,000

Fred smith

March 22nd, 2010 11:22am Report this comment

Not sure why anyone would sign up to it really. It is yet another impediment to someone wanting to be an MP as their hands willbe tied afterwards.

Tiberius

March 22nd, 2010 12:29pm Report this comment

Noa; Major: see the wink symbol at the end of my post.

It's a bit of a mixed blessing that blogs generally don't do smilies because irony, sarcasm, cool and anger can often be missed.

Findlay

March 22nd, 2010 5:16pm Report this comment

While a hanged parliament is desirable, the interim solution is to reduce all public sector pensions by the same proportion that private sector pensions were reduced by Gordon's tax raid.

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