It is Obvious

Chris Rick has got altogether too much to say

The hunt for a brain cell continues

Posted by chrisrick13 on April 11, 2013

It is obvious: if it moves: tax it

I have been aware of the proposed ‘Tobin’ tax that the EU is going to bring in very soon.  I have not paid it much attention as it is such an absurd idea that it will never be enacted…

The idea is that a small levy is made on all financial transactions.  I think the seller pays as he has some money that it can be extracted from, or maybe the buyer ultimately pays.

If the world puts it in place at the same time then it works because there is no choice.  If just one country does not apply it then they get all the business in the world.  If you lay 10,000 worms end to end…one of them would  be sure to wiggle and spoil it all.

In a business that often works on large numbers and small margins this tax is a killer.  They had a similar tax in the UK on gambling.  The small betting carried on and the punters just lost their money quicker.  The big gamblers simply went and bet in another country.  They have now abandoned it and the bookies pay a percentage on their profits.

This type if tax has been tried in several countries and abandoned as their industry simply went elsewhere.  France is doing it at the moment and it is to be generous a flop.

For those who might not like a particular situation but will tolerate it if everyone has to use the same rules I will point to the way French farmers and German car makers have been protected.  It hurts to say it but we ought to have UK bankers protected…in the same way.

It is a nonsense tax and it is staggering that the decision makers in Brussels could not see it thus.

That last sentence had me in a lot of trouble.  If something bad (or good) happens in the UK I can ask why the government/Cameron/coalition did not do the right thin.  I know who to attribute the blame to.  Who do I attribute actions to in Europe?  ECB?  EU? European Parliament? Commissioner for this that or the other?  President of the council?  Angela Merkel?  There is nobody clearly accountable and in line with Tony Benn’s 5 principles I have no idea how they got there, how I might remove them or who they are accountable to.

The Laffer curve operates everywhere.  It is a solid law.  If the curve is very narrow, as it is here, then it is easy to get into a lot of trouble and reduce your tax take to zero or below when costs are considered.

Perhaps it really is time to vote UKIP.

It is obvious: if it moves: tax it until it stops moving


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