Idiot, idiot

The vision of a low-tax Britain that enforces fewer regulations in terms of workers’ rights has been a motivating force for a number of high-profile supporters of Brexit. However, in a letter seen by the Observer, Asscher writes that it is in the interests of both the UK and the remaining 27 EU member states that May’s government is prevented from creating a low-tax “neoliberal” outpost.

In a sign of the complexity of the trade negotiations to come, Asscher writes: “If you and I pay taxes, so should the large enterprises. Let’s fight the race to the bottom for profits taxation together, which threatens to come into existence if it is up to the Conservative UK government.

But a large enterprise is a legal person, not a natural person. And it is only natural persons who can carry the burden of taxation – on the simple grounds that there’s only us around.

The entire idea is thus stupid.

7 comments on “Idiot, idiot

  1. “…Asscher writes that it is in the interests of both the UK and the remaining 27 EU member states that May’s government is prevented from creating a low-tax “neoliberal” outpost.”

    I can appreciate how it’s not in the interests of the latter, but not how it’s somehow not in the interests of the former…

  2. However much we dislike the EU, and barring the usual suspect (only DBC now, not heard from any of his fellow-travellers recently?), most of us seem to, surely it is within the (government is competent and we as government are great wing of the) neo-liberal paradigm?

    As much as neo-liberal means anything other than “nasty person to the right of me”.

  3. As the man said, ‘It’s déjà vu all over again’.

    And Sterling too!

    Independent headline from 1993…

    “Will Britain be the Taiwan of Europe?: Amid accusations by EC rivals that it enjoys an unfair edge, the UK is grabbing a growing share of jobs and inward investment.”

    And…

    “What the critics cannot deny, however, is that Britain is now a more attractive place for companies to invest than many European countries. British workers are cheaper to employ, more flexible, and easier to hire and fire. Mr Major says it is a triumph for Britain’s competitiveness, proof that the Social Chapter destroys jobs.

    The Government is reinforcing these strengths by keeping interest rates as low as possible and allowing sterling to fall.

    ‘It’s not just the 20 per cent that the pound has lost since September but the 7 per cent that it has lost in the last three weeks that should be worrying people on the Continent,’ said a British diplomat as criticism of the UK reached a crescendo last week.”

    http://www.independent.co.uk/news/business/will-britain-be-the-taiwan-of-europe-amid-accusations-by-ec-rivals-that-it-enjoys-an-unfair-edge-the-1471492.html

  4. Taxing a corporation is equivalent to taxing the share-holders, or the share-holders of the share-holders (if those share-holders are corporations) or the customers of those share-holders (if those share-holders are pension funds, trust funds and the like)

    If UK stops taxing corporations entirely and increases taxes on people to compensate, it stops taxing foreigners who own shares of UK corporations, while foreign countries keep taxing (by reduced share value) UK citizens who own shares in foreign corporations.

    People might respond to these new incentives by selling off foreign shares and buying up UK shares, driving the value of foreign shares down and UK shares up and that is somehow bad.

  5. “Asscher writes that it is in the interests of both the UK and the remaining 27 EU member states that May’s government is prevented from creating a low-tax “neoliberal” outpost.”

    Asscher: UK leaves EU. EU prevents UK Gov’t lowering taxes

    How does that work?

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