This is fun, isn\’t it?

the new global action plan must also look beyond aid to other means of financing development. She pointed to the need to tackle tax dodging and financial secrecy, which have led to trillions of dollars being hidden in tax havens by tax dodgers, bribe-takers, money launderers and other criminals.

This robs public services such as schools, hospitals and police forces the world over of much-needed funding – and hits hardest against poor people who rely on public provision. Christian Aid estimates that every year, tax dodging deprives poor countries of $160 billion – more than they receive in aid.

Slightly missing the point that Africa alone is also getting some $500 billion a year in private sector investment. A rather more important number one might suspect.

Consideration of how to tackle capital flight and to strengthen domestic taxation measures will be key to increasing domestic revenues. It is now widely accepted that illicit financial outflows (dominated by corporate tax evasion) dwarf receipts of aid.

Progressive taxation plays a critical role in raising revenues to fund social protection mechanisms and universal access to basic services, and also in establishing the social contract between states and citizens upon which effective political representation and accountability depend. A major issue for the post-2015 framework is to what extent it should emphasise both domestic budgetary transparency and the international financial transparency between states that is necessary to combat illicit flows.

That social contract between state and citizens. Take that logically: not as the piece of lefty boilerplate that it is. This means that the citizenry should be paying taxes so that this social contract exists. Given that companies don\’t have the vote and that no one is going to offer it to them (City of London aside) doesn\’t this mean that in order to foster the social contract we must NOT tax companies and thus instead tax the citizenry?

BTW: Africa is developing very nicely just at present. Best performance since the immediate post-colonial era (funded by borrowing to finance insane import substitution policies and we all know how that turned out) so obviously someone, somewhere, is doing something right. Quite possibly best to leave well alone, eh?

10 thoughts on “This is fun, isn\’t it?”

  1. Oh let’s be objective about this. He likes the idea of the money traveling that way because him & his mates can graze off it as it passes.
    WTF does he think happens in tax havens? They stack pound notes & dollar bills in heaps & sing songs to them. The dosh is out in the world economies looking for rewarding investment opportunities. Provide good investment opportunities in developing countries & then stand clear of the stampede as those bills & notes chase by on their little legs.

  2. Bloke in spain (#2)

    Absolutely correct – He, and his compadre Miliband are lapdogs of the Trade Union movement – it really is like going back to the mid 1970s, and it looks like he, and others from the Compass/IPPR mindset will be the ones outlining the post -2015 ‘framework’ – God help us all if that’s the case.

  3. Beer hasn’t got the vote either, but you seem to be immensely in favour of taxing it. Neither has the franchise been extended to Carbon either, come to that.

  4. Africa is developing very nicely just at present.

    Nigeria excepted. 25 y-o chap was caught in Lagos airport last week on his way to Dubai with $9.5m in cash in his suitcases. All from honest labour, no doubt.

  5. Beer hasn’t got the vote either, but you seem to be immensely in favour of taxing it.

    You seem to be reading too much in to it, which shouldn’t really surprise me.

    Tim, if I understand him correctly, believes that consumption taxes are less harmful to long-term growth than many other forms. And, if you have to tax something, better that than some of Hollande’s other ideas (such as a wealth supertax.)

  6. Now a politician who applied a tax only on politicians would be worth looking at.
    Think of it – the people capable of messing up things for everyone else contributing more than others on similar incomes would be a PR bonus. Can’t quite see Hollande ever doing something like that, no matter how mad his other ideas are.

  7. “Beer hasn’t got the vote either, but you seem to be immensely in favour of taxing it.”

    No, he’s in favour of taxing the purchasers of beer. Who have the vote in almost all cases, if they’re buying the beer legally.

  8. Tim said: “This means that the citizenry should be paying taxes so that this social contract exists.”

    I agree. Corporations have the ear of politicians merely by being the last entity to handle our money before the Treasury does.

Leave a Reply

Your email address will not be published. Required fields are marked *