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Posts Tagged ‘United Kingdom’

I recently wrote a primer on the issue of tax evasion, which is illegal. I made the elementary point that low tax rates and a simple tax code are the best (and only good) way of promoting high levels of tax compliance.

Now let’s shift to the related topic of tax avoidance, which is legal. Unlike evasion, there’s no civil disobedience and no breaking of laws with tax avoidance. It simply means that taxpayers are taking advantage of provisions in the tax code that help protect income from the government.

And we all do it.

All these things I do to lower my taxes are legal.

As Judge Learned Hand correctly opined, nobody has any obligation to deliberately overpay the government.

Tax avoidance also is moral. Tax codes are corrupt and governments waste money, so anything that reduces the flow of revenue to the public sector is helpful.

With that in mind, I want to offer a hearty defense of Mr. Cameron from the United Kingdom. But I’m not referring to David Cameron, the current Prime Minister. Instead, I want to defend Ian Cameron, his late father.

The Financial Times has a summary of what Cameron’s father did to protect against punitive taxation.

Mr Cameron’s father, Ian, was one of the founder investors. Blairmore was incorporated in Panama but based in the Bahamas. The idea was for investors to avoid an extra layer of tax because investors came from lots of jurisdictions and some, at least, would have faced double taxation if the fund had been based in a mainstream jurisdiction — firstly by the country where the fund operated, and then by the investor’s own country when he or she received his profits. …In 1982, when Blairmore was set up, offshore funds were more tax-efficient than UK funds, on which investors had to pay tax annually. …It is also possible that investors avoided paying stamp duty — a tax on the transfer of documents, including share certificates — by using bearer shares, which were exempt from the duty.

I also want to defend David Cameron’s mother, who is still alive and engaging in tax avoidance, as noted by a column in the U.K.-based Times.

He also admitted receiving a lump sum of £200,000 from his mother in 2011, eight months after his father died in September 2010. The handout, which came on top of a £300,00 legacy, could allow Mr Cameron to avoid an £80,000 inheritance tax bill if his mother lives until 2018.

This is perfectly appropriate and legitimate tax planning, and also completely moral and economically beneficial since death taxes shouldn’t exist.

Now let’s consider why David Cameron’s parents decided to engage in tax avoidance. To understand his father’s motives, let’s look at the history of British tax rates, as reported by the Institute for Fiscal Studies in a survey of the U.K. tax system released last November.

In 1978–79, there was a starting rate of 25%, a basic rate of 33% and higher rates ranging from 40% to 83%. In addition, an investment income surcharge of 15% was applied to those with very high investment income, resulting in a maximum income tax rate of 98%.

In other words, David Cameron’s father had to deal with a tax code that basically stole all his money above a certain threshold. Much of his income was earned when the top rate was 98 percent. And when he set up his offshore structures, even after Thatcher’s early reforms, his top tax rate could have been as high as 75 percent.

I frequent use “confiscatory” when talking about tax systems that grab, say, 50 percent of the additional income being earned by taxpayers, but I’m simply expressing outrage at excessive taxation. In the case of 1970’s-era England, even a leftist presumably would agree that word applies to a system that seizes 75 percent-98 percent of a taxpayer’s income (though some British statists nonetheless will applaud because they think all income belongs to the government and some American leftists also will applaud because of spite).

By the way, let’s not forget that David Cameron’s father was presumably also aware that there was lots of double taxation in the United Kingdom because of other levies such as the corporate income tax, death tax, and capital gains tax. So I shudder to think about the effective marginal tax rate that may have applied to him and other taxpayers in the absence of tax planning (maybe they paid more than 100 percent, like the thousands of unfortunate French taxpayers victimized by that nation’s wretched tax system).

The bottom line if that I’m very sympathetic to Cameron’s father, who was simply doing what was best for his family and what was best for the economy.

But I’m not exactly bubbling over with sympathy for the Prime Minister, who appears to be a puerile and shallow hypocrite. I’ve previously shared examples of his government browbeating taxpayers who don’t choose to needlessly give extra money to the government.

And now he’s caught is his own web of demagoguery.

Writing in the U.K.-based Sunday Times, Dominic Lawson has an appropriately jaundiced perspective.

Jimmy Carr must be laughing. In June 2012 the comedian was revealed by The Times as one of a number of showbiz folk to have invested in a scheme that had the effect of minimising the tax paid on their (typically volatile) income. Somehow unable to resist commenting on this story, David Cameron…told journalists that Carr’s behaviour had been “morally wrong”. …In other words: the people are angry and the prime minister wants to be with the pitchfork-waving crowd, not on the other side of the barricades. …now the PM is himself the subject of a whipped-up storm of fury… That is why, in my column of June 24, 2012 (“Cameron’s the clown in this Carr sketch”), there appeared these words: “The prime minister could not resist accusing Carr of ‘morally wrong’ behaviour, a piece of headline-grabbing he will have cause to regret.” …As a result, Cameron has now felt forced to become the first prime minister to make his tax details open to the electorate. It’s a sort of ritual humiliation, but one that will in no way appease those who regard the very idea of personal wealth as immoral. He should never have pandered to them.

Janet Daly of the U.K.-based Telegraph is similarly unimpressed with Cameron’s shallow posturing.

…there is a great mass of voters…who are very susceptible to the impression that Mr Cameron is a rich man who may possibly be a hypocrite when he denounces the tax-avoiding wealthy. …The Prime Minister and his Chancellor had put themselves in the forefront of the assault on “the rich”. This was the modern Conservative party…a major rhetorical revolution that took dangerous liberties with the vocabulary of what was being discussed. The Government began to obscure the difference between tax evasion, which is a crime, and tax avoidance…George Osborne invented a new category of sin called “aggressive tax avoidance”. This was a far nastier, more elaborate form of financial planning… Some kinds of tax avoidance are OK but other kinds are not, and the difference between them is, well, basically a matter of what kind of person you are – which is for the Government to decide. …Mr Cameron says…he has done nothing illegal or unusual… Nor, apparently, have most of the people whose private finances have been revealed to the world in the Panama Papers. …free societies should not create moral “crimes” that can put people beyond the pale when they have done nothing illegal. Mr Cameron may be about to conclude that himself.

By the way, Cameron and his people are not very good liars. Here are some more excerpts from the Times column I cited above, which explained how his mother is transferring assets to David in ways that will avoid the awful death tax.

Government sources pushed back yesterday against claims that the arrangement was a tax dodge. …“Every year hundreds of thousands of parents give money to their children,” a No 10 source said. “To suggest that by giving money to the prime minister there is somehow a tax dodge is extraordinary.” A No 10 spokesman said: “This is in no way linked to tax avoidance and it would be wrong to suggest otherwise.”

This is bollocks, as the English would say. If there was no desire to avoid an unfair and pernicious tax, Cameron’s mother could have left him that money upon her death.

Instead, she made a gift for purposes of hopefully keeping any extra money if her family rather than letting the government grab it. David Cameron should proudly embrace this modest bit of tax avoidance.

It’s definitely what I would do if I ever get to the point where I had enough money to worry about the death tax. Sadly, I don’t expect that to happen because it’s not easy for policy wonks to earn large amounts of money.

But if I ever find a big pot of money that will be around after my death, I know that I’ll want my children and the Cato Institute to be the beneficiaries, not a bunch of greedy and wasteful politicians (sorry to be redundant).

Heck, I’d leave my money to my cats before giving it to the corrupt crowd in Washington.

P.S. Rich leftists often say they want to pay higher taxes, yet they change their tune when presented with the opportunity to voluntarily give more of their money to Washington.

P.P.S. Since I quoted Judge Learned Hand on tax avoidance, I’m almost certain to get feedback from my leftist friends about the quote by Oliver Wendell Holmes about taxes being the price we pay for civilization. Allow me to preempt them by noting that Justice Holmes made that remark when the federal government consumed about 5 percent of our economy. As I wrote in 2013, “I’ll gladly pay for that amount of civilization.”

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In 2009, Paul Krugman assured his readers that government-run healthcare was a good idea, writing that “In Britain, the government itself runs the hospitals and employs the doctors. We’ve all heard scare stories about how that works in practice; these stories are false.”

I guess one could argue that the determination of “scare stories,” like beauty, is in the eye of the beholder.

But if I was writhing in agony on a street because of a broken leg, I wouldn’t be happy with a healthcare system that told me I didn’t need an ambulance.

And if I was part of a system that rewarded hospitals for letting old people die, I might be tempted to say that was a scary system.

Moreover, I would be understandably irked if my I was stuck with a system for healthcare that treated patients with callous disregard.

But if you’re wealthy and well-connected, then perhaps you don’t think these results are scary because you know you’ll always be able to jump the queue in a government-run system and get good treatment for yourself.

In any event, it’s not just the healthcare system that’s scary on the other side of the Atlantic.

A report in the Telegraph paints a grim picture of dental care in the United Kingdom

Dental health standards are falling to “Third World” levels in parts of England because of a crisis of access to NHS treatment, more than 400 dentists claim today.In a letter to The Telegraph, a coalition of professionals from across the country argues that the system is “unfit for purpose” with millions of people seemingly going for long periods without even seeing a dentist, or ignorant of basic dental hygiene.The signatories accuse successive governments of hiding the problem behind a veil of spin and denial. They point to official figures showing large numbers of primary school children having to be admitted to hospital to be treated for serious tooth decay and other dental problems, many of which, they say, could be easily prevented.

As you might expect, the bureaucracy claims everything is just fine.

NHS England denied that there is a crisis…a spokeswoman for NHS England insisted: “These claims are wrong – more patients are getting the dental care they need, and 93 per cent of people got an NHS dental appointment when they wanted one in the last 24 months.”

But the numbers tell a different story.

NHS figures show that almost half the adult population of England (48 per cent) and a third (31 per cent) of children have not seen a dentist within two years. Crucially almost 62,500 people are admitted to hospital in England per year because of tooth decay – three quarters of them, or 46,400, children. …“The NHS dental system in England is unfit for purpose,” the dentists wrote. “Far from improving, the situation has worsened to such an extent that charity groups normally associated with providing dental care in Third World arenas now have to do so in England.

None of this sounds very good, though let’s acknowledge that the dentists in the U.K. are an interest group that presumably wants to get a bigger slice of government money.

So they presumably would have an incentive to exaggerate the downside of British dental care.

But this underscores the problem with government takeover of a sector. Instead of a system of voluntary and beneficial exchange, you suddenly have a zero-sum, third-party-payer-driven system where consumers, providers, and taxpayers suddenly have an incentive to squabble.

P.S. For other U.K. “scare stories,” see herehereherehereherehere, here,hereherehere, here, hereherehere, herehere, here and here.

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In a perverse way, I admire leftists who openly express their desire for bigger government and less liberty.

That’s why I (sort of) applauded when Matthew Yglesias wrote in favor of confiscatory tax rates while admitting the government wouldn’t generate any revenue.

And I gave Katrina vanden Heuvel credit for openly admitting her desire to redefine “freedom” so that it means a claim on other people’s income and property.

Both are proposing horrible policy, of course, but at least they’re honest about their goals and motivations. Unlike politicians, they’re not trying to disguise their intentions behind poll-tested platitudes.

We can now add another person to our list of honest leftists. The new leader of the Labour Party in the United Kingdom, Jeremy Corbyn, is a British version of Bernie Sanders, except he really is a socialist who believes in government ownership and control of business. And the chief economic adviser to Corbyn is Richard Murphy.

And, as reported by the U.K.-based Sun, Mr. Murphy openly says everyone’s income belongs to government.

Chartered accountant Richard Murphy, 57, is the brains behind the “Corbynomics” strategy of renationalisation, higher taxes and printing millions of pounds in “new” money. …his bizarre ideas have already sparked fears among Britain’s top economic experts… One of Murphy’s strategies was revealed in August 2014… The dad-of-two claimed taxpayers’ money was NOT their own – and was instead the state’s “rightful property”. Murphy said: “I would suggest that we don’t as such pay taxes. The funds that they represent are, I suggest, in fact the property of the state.”

To be fair, sometimes people mangle their words. To cite one hypothetical example, accidentally omitting a  word like “not” might totally change the meaning of a sentence and give a journalist an opportunity to make a speaker look foolish.

So maybe Mr. Murphy didn’t really mean to say that the government has first claim on everyone’s income.

But if you continue reading, it becomes apparent that he really does believe that government is daddy and the rest of us are children who may be lucky enough to get some allowance.

“…if we give the state the power to define what we can own, how we can own it and, to a very large degree, what we can do with it – and we do – then I would argue that we also give the state the right to say that some part of what we earn or own is actually its rightful property and that we have no choice but pay that tax owed as the quid pro quo of the benefit we enjoy from living in community. Murphy went on: “Well let me inform you that there is no such thing as ‘taxpayers’ money’: it is the government’s money to do what it will with in accordance with the mandate it has been given and for which it will have to account.

Wow, this truly gives us a window into the soul of statism.

Though let’s be fair to Murphy. He’s simply stating that untrammeled majoritarianism is a moral basis for public policy, even if it means 51 percent of the population ravages 49 percent of the population. And that’s an accurate description of how economic policy works in the United States ever since the Supreme Court decided to toss out the Constitution’s limits on the power of the federal government.

Moreover, Murphy’s view is basically reflected in the “tax expenditure” concept used in Washington and the “state aid” concept in the European Union.

None of this justifies Murphy’s poisonous ideology. Instead, I’m simply making the grim point that statists already have achieved some of their goals.

But maybe it will be easier to counter further attacks on economic liberty now that Murphy has openly said what his side wants.

P.S. There are two types of honest leftists. Richard Murphy, like Matt Yglesias and Katrina vanden Heuvel, are honest in that they openly state what they really believe, even when it exposes their radical agenda.

Some other folks on the left have a better type of honesty. They’re willing to admit when there is a contradiction between statist ideology and real-world results. Just look at what Justin Cronin and Jeffrey Goldberg wrote about gun control and what Nicholas Kristof wrote about government-created dependency.

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It would require several people, working around the clock, to provide daily updates about the bizarre and senseless actions of the crowd in Washington.

And you’d need many additional people to monitor the foolish decisions in state capitals.

I certainly try to do my small part, sharing example of jaw-dropping vapidity by our overseers in government (especially in New York City and California).

But I don’t like to discriminate, which is why I periodically highlight inane behavior by foreign bureaucrats and politicians. And we have two perfect examples today. We’ll start north of the border.

Here are some passages from a CBC report about nanny-state overkill from Canada (h/t: Lenore Skenazy).

Clayton, 8, and Kristopher Cadieux, 10, started their business last summer, digging up worms and selling them as bait for $2.50 per dozen. But after a complaint from a neighbour, the brothers received a note from the city saying they were breaking a bylaw and had to shut down their business. The mayor of Cornwall, Leslie O’Shaughnessy, explained that the bylaw requires all personal business sales be conducted within the home, without outdoor signage. …The city told the brothers to move their business inside their home, and to take down their signs on their front lawn. …Kristopher said the worm enterprise only brought in about $34 a month last summer, and he doesn’t understand why he and his brother are being told they can’t sell worms from their front lawn.

How dare these kids display entrepreneurship.They’re almost as bad as the Canadian kid who got in trouble for stopping a knife attack.

But I still think America wins the prize for teaching kids bad lessons. After all, local government officials have heroically thwarted rogue operators of unregulated and unlicensed lemonade stands, in California, Georgia, and Oregon!

Without adequate government supervision, you never know what might happen. If you allow kids to engage in voluntary exchange, maybe that will be the gateway step to other forms of anti-social behavior. Such as snow removal without government approval. Or giving topless haircuts without a cosmetology license!

Our second example of foreign government stupidity comes from the United Kingdom, which is infamous for astounding – and embarrassing – episodes of political correctness.

But this latest example, reported by the U.K.-based Metro, represent the ultimate triumph of the P.C. culture (h/t: Amy Alkon).

…according to one school, Wonder Woman and her Golden Lasso of Truth are…not suitable lunchbox fodder. According to Redditor twines18, who posted a copy of the letter and offending lunchbox on Imgur, the lunchbox contravened the schools dress code which states children aren’t allowed to bring ‘violent images’ into the building. The letter states: ‘We have defined “violent characters” as those who solve problems using violence. Super heroes certainly fall into that category.’

Part of me is convinced this is a joke, but it seems legit.

And let’s remember this is coming from a nation where anti-gun fanaticism results in jaw-dropping displays of government stupidity.

Anyhow, here’s the letter that was sent to the parents.

So solving problems using violence is bad?

I guess that means this school doesn’t teach the kids about World War II. After all, Churchill and other U.K. leaders obviously took the wrong approach. I’m sure a big group hug would have sufficed to stop Hitler and the rest of the National Socialists.

P.S. Speaking of England, the U.K.-based Spectator reports that local universities have an unfortunate habit of filling the heads of foreign students with very bad economic theories. And when those students gain power in their home countries, you get very bad results.

Varoufakis was a product of British universities. He read economics at Essex and mathematical statistics at Birmingham, returning to Essex to do a PhD in economics. With the benefit of his British university education he returned to Greece and, during his short time in office, obliterated the nascent recovery.But Varoufakis is not alone. Plenty of other visitors to our universities have been influenced by the teaching here and returned to their countries to wreak havoc. Jawaharlal Nehru, the first prime minister of an independent India…was influenced by British intellectuals such as George Bernard Shaw, a socialist, Bertrand Russell, who once remarked ‘communism is necessary to the world’, and John Maynard Keynes. He returned to India and started to put the ideology into practice with state planning, controls and regulations. This was a calamity. …Julius Nyerere, president of Tanzania,…read economics and history at Edinburgh (as did Gordon Brown). Naturally he was surrounded by leftist academics and apparently ‘encountered Fabian thinking’ in particular. The experience made it all but inevitable that Tanzania would endure a bloated bureaucracy, shortages and miserably low growth. …the London School of Economics can rightly claim more than its share, of course. Jomo Kenyatta, first prime minister of Kenya after independence, went there. …overblown, corrupt state industries and attempted import substitution took their toll, so that GDP growth per capita was low and, in some years, negative. …Pierre Trudeau…came to the LSE for his doctorate. He did not finish it but the LSE nonetheless gave him a finishing course in leftist economics. Under his rule, Canada introduced wage and price controls while inflation, unemployment and the national debt all rose. Zulfikar Ali Bhutto, variously president and prime minister of Pakistan, went to…Oxford. …once he had gained power, declaring ‘socialism is our economy’, he nationalised the steel, chemical, cement and banking industries along with the flour, rice and cotton mills. Economic growth slowed to a crawl.

Wow, what a rogue’s gallery of statist politicians.

Though, to be fair, I don’t think you automatically get bad ideas by studying economics in the United Kingdom. It’s a function of being “taught” be misguided professors.

After all, just think what must happen to foreign students in America who take classes from Paul Krugman. If these examples (here, here, here, herehereherehereherehere, herehere, and here) are any indication, they probably experience un-learning.

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I’ve argued that we’ll get better government if we make it smaller. This is important because government is responsible for some things – such as national defense and protection of property rights – that are genuinely important.

Yet a bloated public sector distracts officials from effectively focusing on those things that matter.

There are some legitimate functions of government and I want those to be handled efficiently. But I worry that effective government is increasingly unlikely because politicians are so busy intervening in areas that should be left to the families, civil society, and the private sector.

This is not a novel observation. Mark Steyn humorously observed, “our government is more expensive than any government in history – and we have nothing to show for it.”

And Robert Samuelson made the same point in a more serious fashion, writing, “American government has assumed more responsibilities than can reasonably be met.”

Perhaps most important, there’s even scholarly research – including from bureaucracies such as the International Monetary Fund and European Central Bank – that confirms small government is more efficient and competent.

Now keep all this in mind as we look at an amazing example of what happens when a government is so big and bloated that it spectacularly fails in one of its core responsibilities.

Here are some excerpts from a jaw-dropping story in the U.K.-based Telegraph.

For almost two years Abdullah al Andalusi, led a double life… By night, he taught that the terror group Islamic State of Iraq and the Levant (Isil) was “no different to Western armies,” said that “kaffirs,” non-Muslims, would be “punished in hell” and claimed that the British government wanted to destroy Islam. By day, using a different name, he went to work for the same British government at the London offices of Her Majesty’s Inspectorate of Constabulary (HMIC), the official regulator of all 44 forces in England, Wales and Northern Ireland.

Yes, you read correctly. A jihadist was employed by law enforcement.

But he wasn’t a low-level cop walking a beat. He was in a high-level position with access to information about the battle against Islamic extremism!

HMIC’s staff, who number less than 150, are given privileged access to highly sensitive and classified police and intelligence information to carry out their inspections. The inspectorate’s work includes scrutinising police forces’ counter-terrorism capabilities and top-secret plans for dealing with terror attacks. It has also recently published reports on undercover policing and the use of informants. HMIC admitted that Mr al Andalusi, whose real name is Mouloud Farid, had passed a security vetting check to work as a civil servant at the inspectorate. He was subsequently promoted to executive grade, a management rank, placing him at the heart of the security establishment.

The good news is that this extremist thug was discovered and then lost his job.

Was this the result of a clever and effective counter-terrorism investigation?

Hardly. It was only dumb luck that his superiors discovered his radical activities.

He was only sacked after bosses spotted him on television defending extremist Islamic positions.

You’ll also be glad to know that British taxpayers were giving him a very generous compensation package. So much money, in fact, that it didn’t make sense for him to take up opportunities to become a full-time hater of western civilization.

…said one former colleague at the Muslim Debate Initiative, who asked to remain anonymous. …“Opportunities came along to do dawah [preaching] as a full-time job, but he was never tempted to do that because he had a stable income and pension with the civil service.”

And taxpayers also helped pay for his expensive housing.

Mr al Andalusi…lives in a subsidised £750,000 housing association flat in Westminster.

Gee, how nice that he gets to live in a nice place at the expense of others. I wonder if his subsidized housing is as nice as the taxpayer-financed housing provided to Jihadi John?

Though let’s give Mr. al Andalusi credit. At least he was employed, even if only as an over-compensated bureaucrat.

Other radical jihadists simply go on welfare so they can devote all their time to hate.

So al Andalusi doesn’t qualify to be a member of the Moocher Hall of Fame. Yes, he got subsidized housing, but we want to reserve this honor for more deserving bums.

But he does deserve membership in the Bureaucrat Hall of Fame. After all, getting a senior law enforcement job while simultaneously promoting terrorism is quite a feat.

P.S. Returning to the topic of subsidizing terrorism, the United States also has a self-destructive habit of giving handouts to radicals who oppose civilization. The Tsarnaev family was on the public teat and there have been lots of Somali terrorists sponging off America’s bizarre welfare-encouraging refugee program.

So maybe I need to update the U.S. vs. U.K. government stupidity contest to reflect the fact that both nations are so masochistic that they give handouts to their enemies.

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When I criticize government-run healthcare, I normally focus on programs and interventions that distort and damage the American health sector.

So I’ve written a lot on the failures of Medicaid, Medicare, and Obamacare, as well as the counterproductive effects of the tax code’s healthcare exclusion.

But if some government is bad for the health sector, then lots of government must be even worse.

And that’s exactly what we find when we peruse stories about the British National Health Service.

Here are some excerpts from a remarkable story in the U.K.-based Independent.

A London man whose leg was broken after thieves stole his bike was forced to take an Uber taxi to the hospital after he was told that his injury “wasn’t serious enough” to warrant an ambulance. …Suffering from a broken leg and lying on the ground in agony, he called 999, only for the person on the other end to tell him to call the 111 non-emergency number as his injury wasn’t sufficiently serious for an ambulance. Eventually, three police officers picked him up and drove him home. He then had to book an Uber taxi to take him to the hospital.

Though maybe this is an example of karma.

“That is the most disappointing thing. At the time I was incredulous. I’m always a defender of the NHS but I want to know why they didn’t listen to my call properly.”

Sort of like when a defender of the IRS experiences an audit.

So how does the government defend the fact that it ignored a man with a broken leg?

In a statement to the Standard, the LAS said: “From the information given us, the patient was concious and alert and had no immediately life-threatening injuries…”

Gee, how comforting. If you’re about to die, they’ll send an ambulance. But not for anything less than that.

I guess the National Health Service sets policy based on scenes from Monty Python movies. If you just have a “flesh wound,” you’re out of luck.

Some readers may be wondering if this is an isolated example of incompetence that shouldn’t be used to indict the British system.

That’s a fair point. Indeed, there are doubtlessly similar example of malpractice in the United States (particularly with Medicare and Medicaid) and other jurisdictions where government doesn’t run the entire healthcare system.

So let’s shift to a story in the U.K.-based Telegraph that is a searing critique of the overall track record of nationalized health care.

NHS delays diagnosing and treating cancer are costing up to 10,000 lives a year, experts have warned. …Britain has one of the lowest cancer survival rates in Western Europe.  Nice said too many GPs are “guessing” whether symptoms could mean cancer, with late diagnosis responsible for thousands of deaths. … Britain is eighth from bottom in league tables comparing cancer survival in 35 Western nations, latest research shows, on a par with Poland and Estonia. …Each year, the UK has around 10,000 more cancer deaths which could have been prevented, compared with similar countries in Europe.

Hmmm…, I guess I was right in my spat with a British television host.

The (potentially) good news is that there is an effort to address this terrible track record.

For the first time, GPs will be issued with checklists of symptoms to help them spot the disease, in a bid to prevent at least half of the needless deaths. …Roger Goss, from Patient Concern, said he was surprised that doctors needed to be given such advice.  “I would be quite worried if GPs don’t know the basics of common cancers and what to look out for,” he said.  He also said that in too many areas, family doctors were under pressure to reduce the number of patients referred for tests, in order to save money.

The last sentence in the excerpt is worrisome. One of the big problems with government-run healthcare is that everybody is playing with other people’s money, and healthcare providers don’t have much incentive to be efficient or to cater to the needs of patients.

Which is, unfortunately, quite similar to the problems we have in the United States thanks to pervasive government intervention, which has caused a huge third-party-payer problem.

So I’m not overly optimistic that a new set of guidelines is going to have much effect on the quality of care on the other side of the Atlantic.

Oh, I almost forgot. Why does the title of this column include the parenthetical statement about not telling Paul Krugman about these examples of horrible results in the U.K.’s government-run healthcare system?

For the simple reason that we don’t want to burst his bubble. Krugman assured us back in 2009 that government-run healthcare was a good idea, writing that “In Britain, the government itself runs the hospitals and employs the doctors. We’ve all heard scare stories about how that works in practice; these stories are false.”

So I guess these horror stories we just reviewed are just a figment of someone’s imagination.

And I guess we have to also conclude that all the other horror stories we’ve previously shared (see here, here, herehere, herehere, here, hereherehere, here, hereherehere, herehere, here and here) also must be false.

P.S. We also have some horror stories about government-run healthcare in Sweden.

P.P.S. Though I should point out that there are good things about Sweden.

Heck, there are also good things to say about the United Kingdom.

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There are some things in life that are guaranteed to make me smile.

Georgia Bulldog victories are on that list, of course, and I also relish occasional moments of glory on the softball field.

Shifting to the world of public policy, nothing warms my heart and brings a smile to my face faster than news that taxpayers have successfully escaped the greedy and grasping claws of government.

I cheered when successful French taxpayers moved across the border when Francois Hollande imposed a 75 percent class-warfare tax rate. And I was overjoyed when elitist French politicians whined that the geese with the golden eggs were escaping.

I was happy to learn about consumers traveling across borders to escape punitive air-travel taxes in places such as England and the Netherlands.

I applauded when Toyota moved hundreds of jobs from high-tax California to low-tax Texas. And when oppressed taxpayers successfully escaped from New Jersey. Or from Detroit.

I also was glad to find out that Americans can dramatically reduce their tax bills by moving to Puerto Rico, which is a completely legal tax haven for U.S. citizens.

I’m even happy when American companies use “inversions” to get out from under America’s insanely punitive approach to business taxation. I’ll also defend individual Americans who reluctantly give up their passports to protect themselves from confiscatory taxation.

The common theme in all these examples is that politicians were unable to seize as much money as they hoped because taxpayers had the ability to shift economic activity to jurisdictions with better policy.

This is why tax competition is so praiseworthy – and also why we need to be so concerned about sinister efforts to create cartels for the purpose of replacing this liberalizing process with an “OPEC for politicians.”

But I’m guilty of digressing. Today, we simply want to focus on good news.

And I know this Bloomberg story made me feel all warm and fuzzy. Here are some excerpts about the looming decision of at least one bank to escape excessive English taxes.

HSBC, Europe’s largest bank, has faced calls to move its domicile away from the British capital after the government increased the levy on bank’s balance sheets for an eighth time this year. HSBC is hit the hardest by the tax and paid 750 million pounds ($1.1 billion) last year. Both the Labour and Conservative parties have pledged a more onerous tax regime for banks in their manifestos for the May 7 U.K. election. “Banks and pay are still easy cannon fodder for politicians,” said Jonathan Tyce, senior banks analyst at Bloomberg Intelligence in London. “The lines between the Labour and Conservative parties are more blurred than usual and either way, it doesn’t look promising for banks or bankers.” …Standard Chartered Plc, another British bank that like HSBC makes most of its profit in Asia, is also being urged by Aberdeen Asset Management Plc, its second-largest shareholder, to relocate to Asia because of the cost of being in London.

Good. I hope both banks leave.

While I have grudgingly admitted that David Cameron’s government has done a decent job of restraining spending in recent years, taxpayers haven’t reaped many dividends. Yes, there have been some very successful reductions in the corporate tax rate and a modest reduction in the top tax rate on personal income, but these reforms were more than offset by big tax hikes when Cameron first took power.

P.S. If I understand correctly, HSBC didn’t get a bailout during the financial crisis. But if I’m wrong and the bank did mooch off taxpayers, then I’m much less sympathetic.

P.P.S. Shifting to another topic, I like to share examples of how some nations enjoy faster growth than others, mostly because these comparison invariably help to show why small government and free markets are the best route to prosperity.

To echo this point, here’s a very enlightening chart I just saw on Twitter, which shows per-capita economic output for a group of nations that were all roughly equal back in 1997.

What’s remarkable is that a couple of those nations dramatically boosted living standards in a very short period of time while others have stagnated.

And since I’ve written about the good reforms in Estonia and Poland and complained about bad policy in Venezuela and South Africa, you can understand why this is yet another example of why leftists have no good response to my two-part challenge.

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