What are the core functions of government
Two excellent discussions by Mark Wadsworth
All Countries Are Developing Countries – Part 1
All Countries Are Developing Countries – Part 2
Saudi catches VAT meme
Saudi Arabia is the latest country to catch the VAT meme. The country introduced it at a rate of 5% on 1st January. They ought to know better. Land value tax is a traditional form of Islamic tax. It is known as Kharaj, and though originally intended for agricultural land there is no reason why it should not be applied to urban land, worth many times more than agricultural land. The Saudis should...
LVT, the virtual world and a missed opportunity?
We regularly get told that land is no longer important in the world of the virtual economy, and that companies such as Apple and Google would get away with paying next to nothing.
Yet people are still living in real houses, consuming real food and real energy, wearing real clothes, driving real cars, travelling in real trains and aircraft, purchasing real electronic goods made in real factories...
A Georgist EU?
What would a Georgist European Union look like?
Member countries raise the bulk of their public revenue from an ad valorem tax on the rental value of land.
Contributions to the EU central fund in proportion to each country’s aggregate land rental value.
No tariffs charged on imports to or within the Single Market area.
No restrictions on imports to the Single Market area, subject only to...
Irish border troubles
I came across this information in a discussion about what should be done about the border between Northern Ireland and the Republic.
Ireland’s top exports (Source: International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on February 18, 2017) http://www.worldstopexports.com/irelands-top-10-exports/
Pharmaceuticals: US$31.8 billion (24.9%...
Paradise papers humbug
Over the past few days, The Guardian has been running a series of outraged articles about the so-called “Paradise Papers”, which are revelations about tax avoidance by the great and the good.
The outrage is humbug. It is significant that The Guardian has not opened any of its articles to comment.
If no laws have been broken, than the outrage must be backed by calls for changes in the...
Bombardier v. Boeing – what wasn’t said
Comments about the Bombardier affair demonstrate the abyss of misunderstanding about the nature of trade and of the economic process itself.
US aircraft manufacturer Boeing has initiated a court case against Bombardier, relating to the proposed sale of aircraft to the US company Delta Airlines. Claiming unfair competition, the threat is to impose a tariff of over 200%. This threatens the livelihood...
Inconsistencies
As part of the Brexit debate, we are being told by the “remainers” that we need to protect home producers, which is what the EU’s Single Market has done for the past 40 years. In other words, imports are a bad thing and dumped goods are the worst of all. American President Donald Trump is saying much the same thing – that US industry should be supported, by keeping out imported...
The obscene Institution of ‘ability to pay’
I received this from a correspondent yesterday. It is food for thought.
“From my contract work, more evidence of the tax collectors’ wicked approach: He won’t come after your because your tax planning is fraudulent per se. You’ll attract their attention based largely on how much more they estimate they can squeeze out of you relative to the associated collection costs of...
Vacant buildings law collapses
Vacant buildings and sites used not to be subject rates, the UK national tax on business property. The Rating (Empty Properties) Act 2007 removed this exemption. We were sceptical about the legislation at the time and events have proved us right. Property owners have been trying to challenge the legislation and have now got their way. The owner of a building in Sunderland took the Valuation Office...