The FT has an article by Gideon Rachman this morning which is headlined as follows:
I'd suggest that is unsurprising. The idea of markets that has been promoted is a destructive one. It os oligopolistic at best and by relying on tax cheating undermines the state and democracy, and a major proponent of it has been the USA. Is is any surprise that there is a lack of confidence?
On the other hand my tax justice colleagues and I have been promoting ideas on cooperation that supports fair, open and transparent markets that concentrate on meeting need, using resources effectively and where a level playing field exists between all participants because the proper role of the state in underpinning that freedom to trade is recognised, respected and reflected in proper payment of tax. Democracy is supported as a result.
The US needs to take note.
But what it is fair to say is that the tax justice movement does provide a proper intellectual alternative to the intellectual conundrum Rachman identifies.
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I read the other day of a book-sorry, not sure of the name-written by a former employee of the World Bank who had been enforcer of their doctrines in developing countries. He described how elites had captured the state and run it for their own benefit. He had come to the opinion that the USA had gone the same way.
The tax agenda is only one frame of reference to view the current set of circumstances (though an insightful one). Other equally valid perspectives include:
– Failure of the end of history doctrine. Recent FT interview explored how the world has changed since Fukuyama’s seminal work and flaws in this analysis. THe point being that the rise of islamic fundamentalism and authoritarianism as a challenge to democractic movements was not taken into account.
– Failure of trade architecture – it interacts with tax but is faulty in its own respects (hence current TTIP, TPP and other negotiations)
– Rise of excessive debt – while linked to the expansion of offshore the flooding of the world with cheap USD borrowing (pushed by central bankers and others) was for reasons in addition to tax but threatens to cause the biggest disruption to the global economy and turn the new favoured states (Russia, China and others) into minnows.
The world may soon look very different even without tax reform.
I am sure you are right
This may explain why the neo-liberals are becoming more vociferous at the moment. It’s either the last gasp of a dying idea (they know the game is up) or the final push towards neo-lib nirvana (they are on a roll).
I hope that it is the former.
But I saw loads of Daily Mail readers this morning on my commute into work.
I am happy that the tax justice POV provides an intellectual challenge to failed markets but the challenge remains for the need to capture the populist/mainstream view as well. The bread and butter of change may well lie there.
If we had the money and other resources – how would we achieve that (let’s dream a little……)?
Good question
I am dreaming it – but have been at work 15 hours now and 90 miles to home still to go
Remind me another time
PS we start with wealth taxes