Recently, the Times of London carried a large, bold headline that practically vibrated with moral indignation:
THE TAX AVOIDERS. It headed a story about wealthy people who use a loophole to avoid almost all of their income tax, paying only 1.25 percent instead of nearly 50 percent. The government revenue supposedly lost annually was about $7 billion.
The scheme, for the moment legal, allows the rich to pay their income into a trust established in Jersey, an offshore island completely independent of the British government (though a possession of the British crown).
The trust then returns the money in the form of a loan which, strictly speaking, could be called in—but since the trustees are the accountants whom the rich pay $64,000 per year to administer the scheme, it’s unlikely that they ever would be.
There is surely something inconsistent about a government that welcomes foreigners fleeing their own country to avoid tax, but excoriates its own citizens who do everything legally possible to do the same. The inconsistency can, perhaps, be explained by the fact that 50 percent of the population is now dependent, directly or indirectly, on the government for its income.