However, in reality, VAT, like
any other tax on a corporation, will be paid by some mixture of its customers,
employees, suppliers, and shareholders.
That\’s the new economics foundation.
Yup, when an idea has got into the sluggard brains of even those people I think we can fairly call it well established.
Companies do not pay tax, ever. They cannot, it is simply not possible in this flavour of the universe.
So could we thus, please, make sure that all further conversation about \”taxing companies\” or even \”taxing banks\” takes account of this very important point?
Yes, this does mean you, Robin Hood Tax peeps. The incidence is not on the bank, it cannot be on the bank. Thus we want to find out where the incidence is before we impose the tax, don\’t we? Owen Tudor at the TUC for example, yes, this means you too. Who will actually pay this tax of yours is the most important question to answer.
I say it will be all users, the consumers, of the products of the financial system. Further, I say that the incidence of this tax will be above 100%. That the costs paid will be greater than the revenue raised. Making it a very bad tax indeed.
That I\’ve been making this point for over a year now makes me something of a bore, I know, but I really would like it if someone who supports this blithering idiocy of an RHT would try to answer the point.