A video has resurfaced, thanks to the Tories, of Ed Balls saying that scrapping non-doms all together would actually cost Britain money.
In an interview with BBC Radio Leeds in January, the shadow chancellor says:
I think it is important that you make sure the non-dom rules work in a fair way. I think they were too lax in the past, both the last Labour government and this Conservative government have tightened up, that's something I'll continue to look at, [but] I think if you abolish the whole status then probably it ends up costing Britain money, because there'll be some people that then leave the country, but I think we can be tougher and we should be and we will.
Watch the non-dom section from 6:38 below:
Original post below:
Wealthy British residents who do not pay tax on their overseas earnings would be stripped of their “non-dom” status by Labour, Ed Miliband is set to announce.
He will say that the current rules have turned Britain into a tax haven exploited by the super-rich and commit an incoming Labour government to sweeping them away within a year of taking office.
Detailing the policy promise, Mr Miliband will argue that it is only just for the estimated 116,000 non-doms in the UK to face the same tax demands as their less wealthy fellow UK residents.
Under Mr Miliband's plans, “non-dom” status would be scrapped next April and replaced with a general presumption that anyone permanently resident in the UK would be liable to pay tax on all their income at home and abroad. The money raised from closing an “arcane 200-year-old loophole” would be used to reduce the deficit.
Mr Miliband will say the status enables people with foreign fathers to avoid tax even if they have been brought up in this country, while others register as non-doms on the basis of little more than an overseas newspaper subscription or a foreign a burial plot.
“I don’t blame people for taking advantage of non-dom status. I blame governments for fostering a system that can be taken advantage of,” the Labour leader will say in a speech at the University of Warwick.
“The United States doesn’t do it. No other major country in the developed world does it. No one would propose doing it now if didn’t already exist."