Wednesday, October 03, 2007

The Different Worths of Tax Money

Continuing on the issue of the difference between cheating the system and cheating the system, Åsa Petersen writes really well in Aftonbladet today:

"The radio news reveal cheating with household services [and the right to make tax deductions on hired services, introduced a few months ago]. Half of the companies called up by the radio station are prepared to write something different on the receipt so that the client can request a tax reduction for household services [such as cleaning, baby-sitting, gardening]. For example, you are allowed to make deductions for hedge trimming, but not for pruning trees. The tree is [conveniently] shrunk to a bush on the receipt.

Minister for Enterprise, Maud Olofsson (Center party) is not particularly worried about tax evasion. 'I choose not to see it as a huge problem. I realise that when you implement such a reform, it was like that with the [deduction for building and construction] also, it takes a while before you have a completely serious market. Before customers learn what demands to pose and before companies know how to act.'

Stop for a moment. The companies and the customers know exactly 'how to act' to cheat. They have read the rules and agree to write bush instead of tree, removal cleaning instead of removal transport, on the receipt.

The tax authority cannot do much to stop the cheating. To control all receipts is an administrative impossible. Maud Olofsson instead has her hope set on 'consumer power': 'It is important that the customers, that is, citizens who buy the services, are careful with posing demands. If we are going to buy these services it must be white, we are not going to cheat these rules.'

What if representatives for the government reasoned similarly when it comes to cheating with [other tax money]. 'It is not increased control that is needed in the social security system. Cheating with [temporary parental leave for caring for a sick child] and sickleave pay is not a big problem. The insured just has to learn what demands to pose on the Insurance office: to never get compensation for something they are not entitled to.'

That would be something. If Minister for Social Security Cristina Husmark Pehrsson said that. No, that will never happen. The Alliance government actually separates people from people. People with big resources, those who have big incomes or can afford to buy household services, can avoid closer scrutiny by the Tax Authority. People who on the other hand are sick or need to stay at home caring for a sick child are subjected to tougher controls. In addition new guidelines are coming that will narrow the sicklistings. Society cannot pamper those with migraines or those who have had heart attacks.

Cheating with welfare benefits is according to that logic worse than tax evasion. "Those down there" are assumed to have worse morale and fewer rights than "those up there". This "those down there" must be controlled, disciplined.

Please set about preventing evasion. But if so, consider all evasion with our common resources equally serious. That Maud Olofsson does not see incorrect receipts as "a huge problem', IS a huge problem."

I so agree with Åsa.

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