I noticed this article in the American Economic Review yesterday:
Nothing surprises me about this finding, which is completely consistent with arguments I have been making for a long time. The simple fact is that if we want an economy where the rule of law is upheld so that a level playing is created on which fair competition can be seen to happen then we have to invest in robust tax authorities.
We do not invest in a robust tax authority in the UK. HMRC is most especially lax when it comes to corporation tax. It asks for tax returns from fewer than half the companies in the UK, assuming that the rest do not have income although they have no evidence to prove that.
Most recent surveys suggest HMRC tolerate up to 20% of companies not making returns requested of them and see companies being dissolved as an alternative to collecting tax owing when the owners who get away with fraud as a consequence can set up a new company the next day without any restriction being applied to them.
If we want thriving markets in the UK we have to beat tax evasion, and this government is still not trying to do that.
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Indeed, I remember when working in HMRC a senior manager saying “whatever you do don’t upset the customer” ( as traders were inaccurately called – made me want to say – would you like to buy an assessment ?)
Absurd…..
Graeme McCormick of the SNP who is a retired conveyancing solicitor has some interesting proposals for simplifying the tax system in Scotland through a land, floor and roof tax. Appears to have lots going for it.
https://youtu.be/OFn4w-58SyM
Sorry – but whilst land value taxes have a role to play 98n tax is is a small one
Anyone who claims otherwise does not understand why we tax and what the tax system se3eks to achieve
For a start, I have never met one of them who does not think that tax is about raising revenue, and it is not
Hi Richard, I have an MMT question if you have a spare moment.
USA came off gold standard in early 70s, as we all know. I understand that oil is traded in US Dollars on international market. I observe that US becomes twitchy, if not murderous, when people like Gadaafi suggested an alternate model for trading oil.
The USA is free to print dollars as a sovereign currency.
So, in effect, has the USA has access to “free oil” and manufactured a world wide demand for its currency, which it can exchange for real goods like food and tech by being the world’s oil banker?
If so, nice work if you can get it!
Cheers. Stay well
You have an argument
I think that you are coming at this at too principled an angle? This is admirable but is difficult in an unprincipled society such as ours.
The system is designed to have a thriving Tory party instead who can go cap in hand to its undertaxed supporters and get a share of the unpaid tax as donations.
🙂