What's wrong with the TaxPayers' Alliance?

The TaxPayers' Alliance is a tremendously successful campaign group. Barely a day goes by without Chief Executive Matthew Elliott appearing in the media, representing the views of "ordinary taxpayers". In fact never a day goes by: the Alliance boasts an average hit rate of 13 media appearances a day and puts the links on its website to prove it.

The problem is that it isn't an alliance of ordinary taxpayers at all. It is an alliance of right-wing ideologues. Its academic advisory council is a who's who of the proponents of discredited Thatcherite policies: Eamonn Butler and Marsden Pirie of the Adam Smith Institute, academics Patrick Minford and Kenneth Minogue, Margaret Thatcher's former economic advisor Sir Alan Walters, and others such as ex-Institute of Directors policy head Ruth Lea.

Like all the best propaganda, there is some truth in the Alliance's message. Who could disagree with its commitment to "criticise all examples of wasteful and unnecessary spending", or to putting 2012 London Olympic spending under scrutiny? But the Alliance's concern for better public spending is a stepping stone to its desire for less public spending. And far from being a voice for "ordinary" taxpayers, its policies – opposing all tax rises (what, for everyone, in any circumstance?) and backing a flat rather than progressive tax – will increase inequality and shift wealth from poor to rich.

Stop wasteful public spending

Olympic Stadium, London The TaxPayers' Alliance is right about one thing: the government has a responsibility to spend wisely and efficiently. And Labour has indeed squandered public funds through schemes like the Public Finance Initiative, and by shelling out huge subsidies to private train operators. Imagine our surprise, then, when we spotted high-profile recipients of such wasteful spending among TaxPayers' Alliance supporters. They include Malcolm McAlpine, Director of Olympics contractor and PFI provider Sir Robert McAlpine, and Sir Tom Cowie, Life President of Arriva, the train operator whose poor punctuality seems to grow in proportion to its subsidies. We demand that the government finds more efficient ways to spend our money.

Who pays for the TaxPayers' Alliance?

For an organisation so concerned with transparency, the TaxPayers' Alliance is surprisingly opaque about its own finances. No list of donors is available. It states only that all donations are from private sources and that no single donation accounts for more that 5% of income. But 5% of what? The Alliance's 2006 accounts record an income of £130,000 – up from £68,000 in 2005 – but that seems hardly enough to sustain 10 full-time staff and offices in London and Birmingham. Let's hope those staff are at least paid the minimum wage and claim any tax credits due to them. In 2007 the Alliance published "abbreviated" accounts, which meant income and expenditure were withheld.

The silent majority

Membership chart

The very concept of an alliance of "ordinary taxpayers" is a nonsense. We are all taxpayers and so the TaxPayers' Alliance might as well claim to represent everyone. It in fact claims nearly 20,000 supporters – an impressive enough figure, but one that represents just 0.04% of the adult population in Britain. What about the other 99.96%?

Join us

Now you have a choice … of TaxPayers' Alliance. Register your contempt for high-tax hell-holes like Denmark and Sweden by joining the other Alliance. Or show your support for fairer taxes and better public services by filling in the form below. We don't really have anything to offer you – not even a badge – but will send you email updates.

Mission impossible

Here's the TaxPayers' Alliance mission:

To reverse the perception that big government is necessary and irreversible.
[Have they heard of the credit crunch?]
To explain the benefits of a low tax economy.
[Don't forget to explain the benefits of cutting public services at same time, especially when there is growing pressure on the NHS and when social care provision can barely keep pace with an aging population.]
To give taxpayers a voice in the corridors of power.
[Thanks for offering, but the TaxPayers' Alliance is no more representative of taxpayers than Mary Whitehouse was of viewers and listeners.]

Fairer taxes not lower taxes

Although income tax is broadly progressive, the total tax burden falls heaviest on the poorest 10%, while the top 10% pay among the lowest rates (see pdf). Gordon Brown is right to target any tax cuts aimed at stimulating the economy at the poor. But in the long term, either taxes must increase or public services must be cut. That's why we need fairer taxes not lower taxes – where the cost is shouldered disproportionately by those most able to pay. This means increasing income tax rates for the highest paid, closing loopholes and clamping down on tax havens.

Somalia …

… where every day is Tax Freedom Day.

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