Well, that proves it, doesn’t it? If Richard Murphy has a plan to reduce this gross inequality then we know that the entire set up is simply phantasmal. That’s a metric that hasn’t failed us yet nor do we expect it to.
And, as ever, Murphy manages to come up with a non-answer to a non-problem. Because of course not only is all this inequality and inequity not happening in the UK economy, it’s also not true that a company has to be a UK domiciled company to be in the FTSE 100. And if you’re not a UK domiciled company then the UK tax system has no effect upon what you do, how much you pay people, nor the tax bills associated with all of that, outside the boundaries of the UK. So, to take one obvious example, Shire Pharmaceuticals (Irish based and Jersey registered) would not be affected by such a scheme. Further, it would be a reasonably trivial scheme for any and every member of the FTSE 100 to shift domicile (recall, the European Union insists on complete freedom for a company to shift domicile without penalty) so as to escape from such strictures.
And let’s be honest about this, shall we? The underlying complaint is that the managerial executives are really greedy people. So, if they could get away with making sure that their incomes were not reduced then they would. Thus, we would expect such a tax scheme to lead to redomicile. And that, in turn, would mean those companies entirely moving out of the UK tax net.
So, umm, what is this increase in tax revenue of which Murphy speaks? And to think that he is the economics guru for our likely alternative Prime Minister, Jeremy Corbyn….