Robin McAlpine is the director of the Scottish left think-tank Common Weal. As he revealed in a podcast this weekend (listen to the last couple of minutes), I have written a White Paper on taxation in the series that they are producing on preparation for an independent Scotland.
The White Paper is, in his opinion, radical. It also, and perhaps inevitably, promotes the idea of Scotland having its own currency, with that currency and the tax system being inextricably linked in the process of managing the Scottish economy.
There will be more on this soon. The launch will, I gather, be in the next couple of weeks. I will be in Scotland on 14 August, but not for this. I am back on 5th to 8th October for a series of events, some very definitely on this issue. There will be more details as soon as I know them.
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It worries me a little that McAlpine considers your paper to be “radical”
This is just a sympathetic and respectful outsider’s tip but it might be an idea not to emphasise the tax side and associated MMT notions too much too much when advocating for an independent sovereign currency. At least not at first. Two reasons:
1. It is easier to win people over when you begin from a premise that’s mutually accepted and build from there. The idea that tax and revenue are indirectly related (at most) is well and good. I have no argument with it but it is still alien to most people. Many Scots will feel inclined to tread carefully in moving to independence and that’s a barrier that might need be overcome gently.
2. Hitherto, the general argument for an independent currency has emphasised the importance of monetary sovereignty as it relates to trade/exchange rates, a sovereign central bank controlling “monetary policy” (interest rates etc.) and intervening in bond markets where necessary – or to put that another way – control of sovereign debt.
These are immediate and very familiar concerns especially so given what’s happened with Greece, Spain, the German trade mega-surplus etc. They make for a good reference point.
On the theory side it may be an idea to introduce the concept of Optimal Currency Areas before that of MMT (with the emphasis there being on the virtues of a small currency area as emphasised in the original Mundell theory, not the the idiot “new” OCA theories that were used to justify the Eurozone as we know it).
I am merely suggesting that, for future reference, throwing the audience in the deep end may not always be the best approach.
We’ll see
Although I have to say I do not agree with you
Looking forward to it!
With respect to the eralier comment, but by way of balance – I’d much rather the full exposition of your actual postitions on tax and money theory.
Better that than a series of positions, even if they’re intended to gradually edify. We’ve still a fair amount of time to digest these ideas as a population.
Agreed
Looking forward very much to your white paper Richard!
You will not persuade many of the Haves to vote YES unless they see a personal benefit. That might not be a noble sentiment but it’s fact.
Abolish tax and replace it with an Annual Ground Rent charged per square metre on land and floor space according to certain land types.
It encourages growth and enterprise while providing extra funds for a Citizens income and puts money back in most folk’s pockets. It’s easy and cheap to collect and can’t be avoided.