Letter on new powers for tax officials by Richard Wellings in The Independent
Sir – The proposals to give tax officials the power to raid bank accounts (Business, 6 July) may have the opposite effect to that intended. They could easily encourage the self-employed to deal in cash and there is a risk that overall tax receipts would actually fall. Trust in the banking system may also be diminished, with serious consequences for business growth. These counterproductive measures, which also represent yet another extension of state power, should therefore be opposed.
Dr Richard Wellings
Deputy Editorial Director
Institute of Economic Affairs
For more on the growing role of the state see
Living with Leviathan: Public Spending, Taxes and Economic Performance
by David B. Smith.