Ritchie Roundup

Most interesting today.

This for example. Not collecting tax which isn\’t due is treason now.

Or:

And why did he say this:

B[ecasue] higher business taxes will ultimately be paid by a combination of employees (with lower wages and salaries), consumers (through higher prices), or shareholders (with lower dividends). And in an open economy, such as ours, it will probably be the employee who loses out.

This is nonsense.

No, not nonsense, it\’s the standard economics of taxation.

And finally, the Exchequer Secretary to the Treasury says:

First, people’s rhetoric seeks to gloss over the relative proportion of the tax gap that is attributable to large business.

Second, their own estimates have looked at the statutory rate of Corporation Tax, and the effective rate, and classed the difference as avoidance. They’ve chosen to ignore the fact that much of the difference can be explained by double taxation relief, capital allowances, R&D tax credits, and other legitimate reliefs.

Yup, the basic criticism of Ritchie\’s calculation method that first appeared right here on this blog.

11 comments on “Ritchie Roundup

  1. Richard’s favourite catchphase appears to be “There are none so blind as those who will not see.” I think that at least he bases on personal experience.

  2. Said this couple of times before but will say it again;

    Murph doesn’t have to believe any of this crap. He’s found a cushy number he writes what his paymasters want to hear he gets to put a crust on the table.
    What’s a semi retired accountant supposed to do. Stack shelves, Tescos?

    Classic capitalism. Find a need, exploit it.

    The fact that so little of it makes sense reinforces my opinion. He’s writing towards requirements not from conviction.

  3. Just been reading thu RM’s post:
    “On evasion I use his ratios on VAT loss – which the World Bank also find give a remarkably accurate estimate of the size of the shadow economy. But he argues that tax returns give a better guide. This ignores the fact that the most serious tax evaders don’t submit tax returns precisely because they’re in the shadow economy! It’s so obvious HMRC data is wrong it’s absurd for him to argue otherwise but in case of doubt note this: total tax avoidance on income tax, national insurance and CGT is just £1.4 billion they said in 2008 – 09 and then in the budget Osborne said it exceeded £1 billion on CGT alone. ”

    and then

    “The simple fact is this: the tax gap narrative makes sense because it is sense, it is researched, it is based on fact, it is logically coherent and to argue that it’s better to cut than collect £120 billion (or just a part of it – because I’ve always acknowledged that’s the best that’s possible) is just plain offensive to those who will be losing their jobs, benefits, pensions, education and much more.”

    Oh FFS I know the shadow economy. Easy enough to pay no IT, VAT, NI nuffink’. Customer conspires with you to do it because you split the savings. They pay less. You make more. There are costs. They have to wash the money out. You have to wash it in.. There’s the risk costs. Neither can go to court if if the other f***s around.
    Only thing makes it worth while is the tax rates. Higher they are the more the incentive & the more effort it’s worth making. Higher they are more customers come looking for a deal. They may have their own grey money they want to spend off the books.

    Cut the tax rates enough nobody’d bother.

  4. I recall many years ago seeing a great play on the TV (Play For Today on BBC?) about a balding, fat, unfit, mid-40s I guess man who, disappointed at the lack of success of Great Britain in the Olympics, decided he would train to participate in the (I think) mile to win a gold medal for Britain. He had never run competitively before and his training regime consisted of putting 2 mattresses against opposite walls of his 15 foot living room, having a daily run between and slamming into the mattresses until he got quite sweaty after about 10 mins, whereupon he would stop for the day.

    If I recall, the hero did in fact enter a local race, came last (hours off the pace), justified this to himself and his friends by having flu, made some minor adjustment to the training regime and continued confidently towards the date of the Olympics. The play was hilarious, if you like nutters and their car crash lives.

    It is just this sort of spectacular self-delusion about his own competence and importance that is so evident in Richard Murphy. The level of self-confidence he exudes, despite all evidence to the contrary of any scrap of expertise in several of the areas in which he opines, hypnotises his paymasters and enables him to corner the market in the garbage taxonomic papers, media articles and blogs that he pours forth.

    It’s absolutely fascinating. The man is so detached from reality he’s heading for the same orbit above mere mortals as David Icke and both are likely to finish their days in padded cells.

  5. BraveFart

    I have often wondered whether it is an act – sort of an Ali G but who stays permanently in character. Using all the lefty cliches, and seeing how far he can go to be believed, fooling the great and the good, having a good laugh all the way. If so, hats off to him.

  6. It’s his bit about tax avoidance being the same as tax evasion that get me. I avoid spending hundreds of pounds a year on tobacco tax by not smoking. That is supposed to be morally equivalent to being a baccy smuggler in Murphy’s mind.

    If I choose to do things that are not taxed, or less heavily taxed then that is “tax avoidance” and Murphy wants a general anti-avoidance principle in law. Does he really want to make smoking compulsory?

  7. You do sometimes wonder whether Murphy looks at himself in the mirror (shudder) and thinks, “Hmmm, what rubbish do my union paymasters want me to write today?”.

    Of course, it is entirely possible he is sincere. A lot of very mad people are.

  8. the real scandal is not the incoherent deluded arrogant buffoons exist, but that they are regarded as ‘experts’ by no lesser light than the self-appointed newspaper of the intellectual left elite. It makes me cringe with embarrassment.

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