Sunday, July 13, 2014

Independence is not always good...


Scottish government published through GERS the Scotland’s Public Finances to justify and give meaning to the cause of INDEPENDENCE from UK. I picked some important figures and facts to help the electorate understand in simple ways the basis of the YES! advocates. In 2012-2013 total public spending of Scotland was estimated to £65.2 bn while the onshore tax receipts were £47.6 bn. With the offshore tax receipts, Scotland received a total amount of £53.1 bn. The deficit is obviously reached to £12.1bn. From 2008 to 2013 as a whole, net fiscal deficit on the average is £10.3 bn. Scottish government concluded that Scotland spending is 9.3% of UK total spending while UK receives 9.5 % of the total UK revenue. (Obviously, there is 0.2% difference and anyone may ask where the 0.2% “surplus” go?) Scottish government further concluded that Scotland has been in a relatively stronger fiscal position then UK. But despite of this, Scottish taxpayers, on per capita basis, are paying £10,000 and higher compare to other UK taxpayers’ £8,800. A difference of £1,200.00 in "favour" of non-Scots British. But how much is the actual tax payment of each Scottish? The individual in majority of the tax payers in labour force? There are so many gray areas in per capita basis. It does not guarantee a regressive and oppressive tax scheme. With deciving facts and figures partially presented, the Scottish government finally concluded that Scotland Independence is necessary. Accordingly, with Independence, Scotland revenue will reach £57,3 bn from offshore tax receipts and £6.9bn from offshore tax receipts, a combined receipts of £64.2 bn. Further, with independence, Scottish government “will have the ability to tailor policy and create the conditions for the economy to grow, opportunities for productivity performance enhancement, job creations. The premises and arguments presented by Scottish government do not logically justified the conclusion and call for INDEPENDENCE. The deficits mentioned above are expected to decline based on estimated combined receipts of £64.2 bn against the £65.2 bn (let me use this 2012-2013 figure) will give Scotland a £1 bn deficit in 2016-2017. The revenue however is based on the £110/barrel assumption and this assumption works in a market-oriented framework. This is not acceptable. Nationalisation programs should not work and follow the market value to meet the object of giving the constituent-consumers both residents and businesses less expensive products for the benefit of increasing their purchasing power, higher real wages; and lower input costs and competitive market price for businesses which are expected to be at advantage and creating more jobs as the nationalisation stimulates the economy and positioned competitively in global market. Thus revenue estimates can be higher but will not come from offshore tax receipts but surplus from oil and gas generation and onshore tax receipts from income taxes and VAT,etc. The revenue increases however does not give Scottish the guarantee of declining deficit once Scotland independence is realized. The 0.2% difference from 9.3% UK spending for Scotland and 9.5% UK revenue from Scots is, I can say hypothetically , used and spent for National Defense and Home Security, Foreign Mission and International Relations, Debt Services, reserves increases, UK as a creditor-nation, loans to foreign countries, and Intelligence which may not be subject to public disclosure. (NAO provides Whole of Government Accounts in consolidated financial information without the notes and particulars. I do not have access to other information I need to find out the facts about my hypothesis). This will give us an idea that the same expenditures will be given attention by Scottish government and fund more than £20 bn per year. Thus the deficit of £1 bn in 2016-2017is not realistic and the tax reform policy of Scotland will be regressive to meet the deficit and risk averse to propagated lower tax payments and tax control will be no longer part of the constituents but lies and confined to Scottish government which has no any other choice but to be tyrant cause by the pressure of deficit. One important fact to be considered by Scottish people is the 9.3% UK spending for Scottish is higher compare to other UK nationals. Scottish people is 8.3% only of the UK total population. The public spending for Scotland can be proportionately decreased to 8.3% of UK total revenue equal to other UK peoples. But equality of 1:1 does not guaranty a just governance and treatment. UK spends more for Scottish on social and welfare services particularly to a large number of elder and aged Scottish. The Scottish policy for economic growth inclusive of tax reform, productivity, and job creations are not confined exclusively to UK Parliament. Scottish Parliament can push and realize the same objects even in unity with UK. Politicking in Scottish Parliament derails the legislations of necessary changes for Scottish. Too much politics is a mess. Management of Scotland is necessary to realize the objects of equitable distribution of resources and generation of revenue (tax policy independence can be done through Scottish Parliament in coordination with and not for approval of UK Parliament to define the tasks of HMRC and HM Treasury) through Parliamentary debate and legislation and this is the purpose of representation. The Scottish Parliament must be abolished if Referendum is a solution to simple problem and objects. Scottish people and residents and businesses should not be alienated. They should continue enjoy their tax payments through quality and satisfactory public services, as a confirmation of their empowerment and let them meet the needs (if there are any or the 0.2%) of other UK peoples. Let the mutual dependency continue. “Let no one seek his own, but each one the other's well-being..” 1 Corinthians 10:24 Otherwise Scotland is waging war against the Queen's government.

No comments: