NEWS
ASI comments on non-dom tax provisions feature in The Daily Telegraph
The Adam Smith Institute's comment on non-dom tax provisions was quoted in The Daily Telegraph:
However, experts have attacked the proposals, warning that scrapping the non-dom tax status could lead to an exodus of top talent from Britain and "put the UK's international reputation at risk".The Adam Smith Institute has said the plans risked "cutting off the country's nose to spite its face", while Simon Walker, director general of the Institute of Directors, said: "There is a serious risk that large numbers of the international financial community, who have headquartered themselves in London at least in part because of our tax regime, will now exit the country."
ASI briefing paper “Non-Sense: Examining the arguments and rhetoric around non-dom tax provisions“debunks the oft-quoted claims being made by politicians about non-doms and highlights the potential financial risks associated with Labour’s proposed changes to the rules.
The paper explains how Miliband’s proposed changes to the tax rules could cut government revenue, drive away investors and risk hurting middle-income migrant workers registered as non-domiciled in the UK.
Kate Andrews's comments on compulsory voting feature in City AM
Head of Communications at the Adam Smith Institute, Kate Andrews, was quoted in City AM on a new poll that found the majority of Britons support compulsory voting:
"It's clear that Britons have a deep respect for the right to vote," said head communications at the libertarian Adam Smith Institute Kate Andrews. "But that right should never be conflated with a duty for individuals to actually take part in the voting process.""Many argue that one could simply spoil their vote if voting were compulsory, but this does not take into account people who are choosing not to vote to protest government structure or the voting process. Indeed, not voting is the best, safest form of civil disobedience one can take part in," Andrews argued.
ASI briefing paper "Non-Sense" features in The Daily Telegraph
New ASI briefing paper "Non-Sense: Examining the arguments and rhetoric around non-dom tax provisions" features in The Daily Telegraph:
A promise by Labour leader Ed Miliband to scrap non-dom rules “risks cutting off the country’s nose to spite its face”, a think tank report has warned.
In a new paper entitled “Non-Sense”, the Adam Smith Institute laid out the case for preserving the non-dom system, under which some individuals living in the UK are exempt from paying tax on foreign income that is not brought into the country.
Ben Southwood, head of research at the ASI, said: "Cracking down on non-doms may sound nice but proposals that sound nice aren’t always good policy."
"Mr Miliband’s scheme risks making both the UK and the Treasury poorer and less fair."
The briefing paper "Non-Sense: Examining the arguments and rhetoric around non-dom tax provisions"debunks the oft-quoted claims being made by politicians about non-doms and highlights the potential financial risks associated with Labour’s proposed changes to the rules.
The paper explains how Miliband’s proposed changes to the tax rules could cut government revenue, drive away investors and risk hurting middle-income migrant workers registered as non-domiciled in the UK.
ASI briefing paper "Non-Sense" features in City AM
New ASI briefing paper “Non-Sense: Examining the arguments and rhetoric around non-dom tax provisions” features in City AM:
Ed Miliband's reform to the non-dom system ignores all the evidence, risks costing the country money and could make the UK less attractive to entrepreneurs.
That's the verdict of a new briefing paper from the Adam Smith Institute that aims to separate fact from fiction when it comes to the political rhetoric surrounding non-doms.
In a speech at the University of Warwick on Wednesday, the Labour leader claimed there were around 116,000 non-doms in the UK. According to the ASI, that isn't the whole story.
The 116,000 figure accounts for those people who filed a self-assessment form and ticked the non-dom box. However, the ASI reckons there are around one million students and workers in the UK who don't have indefinite leave to remain in the country and are therefore, by definition, non-domiciled.
The briefing paper “Non-Sense: Examining the arguments and rhetoric around non-dom tax provisions“debunks the oft-quoted claims being made by politicians about non-doms and highlights the potential financial risks associated with Labour’s proposed changes to the rules.
The paper explains how Miliband’s proposed changes to the tax rules could cut government revenue, drive away investors and risk hurting middle-income migrant workers registered as non-domiciled in the UK.
Press Release: Political move to scrap non-doms ignores all the evidence, new paper argues
For further comments or to arrange an interview, contact Head of Communications Kate Andrews: kate@adamsmith.org | 07584 778207 Labour’s non-dom policies risk cutting off the country’s nose to spite its face:
- There may be over a million non-doms in the UK, contrary to Miliband’s claim that there are 116,000; most of them are not rich people but foreign workers and students.
- The UK’s non-dom system is not unique; countries like Australia, Japan and China all have tax systems that focus on local income for non-permanent residents.
- The existing crackdowns on non-doms introduced by Labour (and supported by the Tories) have ended up particularly hurting less well-off non-doms (e.g. migrant doctors) while hitting the super-rich comparatively less.
A new briefing paper from the Adam Smith Institute debunks the oft-quoted claims being made by politicians about non-doms and highlights the potential financial risks associated with Labour’s proposed changes to the rules.
The paper “Non-Sense: examining the arguments and rhetoric around non-dom tax provisions” explains how Miliband’s proposed changes to the tax rules could cut government revenue, drive away investors and risk hurting middle-income migrant workers registered as non-domiciled in the UK.
The paper argues that recent reforms to non-dom tax laws, whereby one has to pay £30k after seven years of residence in order to be taxed on the remittance basis, has ended up hurting relatively less wealthy non-doms and has done very little to the very wealthy ones.
The further changes proposed by Miliband could push Britons to become ‘domiciles’ more quickly in other countries and deprive the UK the inheritance tax such people would have paid had they been domiciled in Britain. These changes would also affect many other parts of the law, such as family law, which depend on domicile status; such changes would have far-reaching implications, such as disputes over guardianship of children.
The paper explains that the status of non-dom is affiliated with any person who does not intend to remain in the UK indefinitely. International hedge fund managers, transfer students from Kenya, and Indian doctors working for the NHS are all considered non-doms. Potentially there are over one million non-doms residing in the UK, not 116,000 as Miliband claims. Most of these residents are not wealthy, but rather normal earners and students.
It is also not the case that the UK’s non-dom system is virtually unique in the world. Several former British colonies have exactly the same system as the UK, for example Ireland, Malta and Jamaica. Other countries such as Australia, China and Japan tax only local income for non-permanent residences as well.
Head of Research at the Adam Smith Institute Ben Southwood said:
Cracking down on non-doms may sound nice but proposals that sound nice aren’t always good policy.
Miliband’s scheme risks making both the UK and the Treasury poorer and less fair.
Scrapping non-dom status does make it easier for the Treasury to claw in the foreign earnings of people who intend to stay in the UK temporarily, but it also makes it harder for them to keep a hold on Brits who leave intending to come back.
Thankfully policymakers are not so easily swayed and MPs are often effective gatekeepers to populist wheezes - there is at least a chance this one will be stopped as well.
Notes to editors:
Read “Non-Sense: examining the arguments and rhetoric around non-dom tax provisions” here.
The Adam Smith Institute is a free market libertarian think tank based in London. It advocates classically liberal public policies to create a richer, freer world.
Kate Andrews discusses pension reforms on Sky News
Head of Communications at the Adam Smith Institute Kate Andrews spoke to Sky News about the new pension reforms that give more freedom to savers and allow pensioners to sell their annuities.
Sam Bowmans appears as guest on ITV's O'Brien show to discuss A&E pressures and drug legalisation
Deputy Director of the Adam Smith Institute Sam Bowman appeared as a guest on ITV's O'Brien show to discuss the pressures on A&E services as well as the merits of drug legalisation in the UK. Watch the clips here.
Clip on A&E services begins 21:08.
Clip on drug legalisation begins at 43:20.
ASI briefing paper "The Ties that Bind" features in Yorkshire Post article and editorial
New ASI briefing paper " " features a Yorkshire Post article as well as today's editorial. Article:
Increasing levels of racial diversity driven by immigration to British cities have very little negative impact on social cohesion, according to a repot which appears to contradict claims that migration undermines the country’s social fabric.
The Adam Smith Institute concluded that higher levels of diversity can have a slightly negative impact on trust levels - but when it comes to other measures of social cohesion, including civic participation and volunteer work, there is virtually no evidence to suggest a negative effect.
The Institute reviewed literature on the subject which looked at communities in the United States, Europe and the UK. It found that if other factors are accounted for - including economic deprivation - the negative relationship between diversity and cohesion often disappears.
While research from the States found a clear negative relationship between immigration and social cohesion, research in Europe found no negative impacts.
Research in London had found that once economic deprivation is controlled, higher levels of ethnic diversity actually have a positive effect on social cohesion.
The research appears to contradict claims that immigration must be restricted as it undermines the country’s social fabric. The paper does comment on Bradford or other Northern cities which saw disorder in 2001.
Continued p. 2, Yorkshire Post.
Editorial:
Coincidentally, Sir Keith’s comments come on the day that the Adam Smith Institute claimed that greater ethnic diversity in the UK has not had a negative impact on community cohesion. This refutes Mr Farage’s alarmist assertion that children can no longer play football in the streets of some towns because of concerns about immigration. The think-tank also takes Ukip to task for claiming that migrant workers are taking the jobs of people born in Britain; it says immigrants contribute more to Britain’s debt-laden finances than they take out in benefits.
It is a compelling argument which should be heard before any post-election caps or quotas have a counter-productive effect on the economy. The problem for the country’s political elite is that they find themselves in the unenviable position where Mr Farage’s party is making all the running on this issue.
The paper, “The Ties that Bind: An analysis of the relationship between social cohesion, diversity, and immigration”, is a comprehensive review of the academic literature on the relationship between immigration and social cohesion in the Europe, the UK and the United States.
It concludes that higher levels of diversity only lead to a slight negative impact on generalized trust within UK communities; however, there is virtually no evidence to suggest that diversity undermines other measures of social cohesion, including civic participation, trust in authority and volunteer work in the UK. Furthermore, the paper finds that if other factors are controlled for – including neighborhood status and economic deprivation – the negative relationship between diversity and cohesion often disappears.
Mythbusting Nigel Farage on immigration - Ben Southwood highlights ASI report in CityAM
Head of Research Ben Southwood writes for CityAM on new ASI briefing paper “The Ties that Bind: Analysing the relationship between social cohesion, diversity and immigration”:
The political scientist Robert Putnam famously found that Americans “hunker down” in the face of social diversity, doing less in the community and trusting people less – even their own compatriots.When Nigel Farage suggested that one reason kids tend not to play on the street nowadays was immigration, he was voicing a common concern: that immigrants undermine social trust and social cohesion.
Trust and social cohesion are important on more than just one level – they are a crucial correlate of output, living standards and growth. If immigration did undermine trust, it would be a major argument against it. But it’s not clear that the data can support this objection, whatever people’s anecdotal experience might seem to show.
A new Adam Smith Institute briefing paper out today “The Ties that Bind: An analysis of the relationship between social cohesion, diversity, and immigration” looks broadly to see if Putnam’s result is held up by the wider research. There is some (albeit conflicting) evidence that immigration and diversity undermine generalised trust – how much people in society trust other random people in society.
The paper, “The Ties that Bind: An analysis of the relationship between social cohesion, diversity, and immigration”, is a comprehensive review of the academic literature on the relationship between immigration and social cohesion in the Europe, the UK and the United States.
It concludes that higher levels of diversity only lead to a slight negative impact on generalized trust within UK communities; however, there is virtually no evidence to suggest that diversity undermines other measures of social cohesion, including civic participation, trust in authority and volunteer work in the UK. Furthermore, the paper finds that if other factors are controlled for – including neighborhood status and economic deprivation – the negative relationship between diversity and cohesion often disappears.
Author of ASI briefing paper "The Ties that Bind" writes for Conservative Home
Author of new ASI briefing paper "The Ties that Bind: Analysing the relationship between social cohesion, diversity and immigration" writes for Conservative Home:
Claims that immigrants are undermining the social fabric of the UK are largely unfounded. A new briefing paper from the Adam Smith Institute released today suggests that restricting net migration is likely to be counter-productive at improving social cohesion.
Opinion polling regularly shows that immigration is one of the most important issues for the electorate. The social impact of immigration is frequently cited as a reason to contain migration flows.
The paper, “The Ties that Bind: An analysis of the relationship between social cohesion, diversity, and immigration”, is a comprehensive review of the academic literature on the relationship between immigration and social cohesion in the Europe, the UK and the United States.
It concludes that higher levels of diversity only lead to a slight negative impact on generalized trust within UK communities; however, there is virtually no evidence to suggest that diversity undermines other measures of social cohesion, including civic participation, trust in authority and volunteer work in the UK. Furthermore, the paper finds that if other factors are controlled for – including neighborhood status and economic deprivation – the negative relationship between diversity and cohesion often disappears.
Media contact:
emily@adamsmith.org
Media phone: 07584778207
Archive
- May 2024
- April 2024
- March 2024
- February 2024
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- January 2021
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- September 2013
- August 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- April 2008
- March 2008
- February 2008
- November 2007
- October 2007
- September 2007
- May 2007
- April 2007