I like the theory. But
Thats exactly what happens. Iāve already explained this and given the Laffer Curve as a reference.
If you think that reducing output of industries (such as your farming example) youāve given supports gains in yield, in the same way that the Laffer Curve increases tax revenues by lowering tax rates Iād suggest your even more deluded and clueless about economics as everything else you claim to be an expert in. Look at Ireland which has a corporation tax rate of around 12.5% - they received massive amounts of foreign investment as a result from Google, Apple, Pfizer etc.
Donāt run a business whatever you do.
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But weāve already discussed how the Laffer curve never had any credibility. Laffer made up a curve based on connecting two doubtful data points - (1) if you have very high taxes the actual yield (only in a US based tax structure btw) is less than target because people become highly incentivised to reduce their tax contributions; (2) if you have a very low tax rate then people are more likely to honestly offer all the tax they are due.
Both of these are suspect - many people will aim to reduce their tax payments regardless of
the tax rate and in a tax regime like the UK where the majority of people have no choice due to PAYE this doesnāt apply.
Then Laffer drew a curve between the two points (note - both false points for the UK) and claimed you can get more tax revenue through lower tax rates.
As everyone can see from this explanation it is a joke of a theory. And especially a joke of theory when you try to apply to businesses. They simply take the extra retained profit and give it executives and shareholders.
Whatever you do, donāt pretend to be an economist. And donāt base your whole argument on rubbish theories.
People pay taxes when they are fair and businesses invest in countries where they can maximise their profits. Low taxation (corporation tax) is one key area and low PAYE rates attract workers to fill the jobs.
I quoted Ireland as an example - an EU member state which plunged its corporation tax rates after the financial crash to stop it going bankrupt. It worked and that is due to the Laffer Curve that optimised tax returns by lowering the tax rates.
Stop making things up, you might get somewhere in an argument.
Lets just agree to disagree. You want low taxes and therefore place faith in the Laffer curve.
I disagree and have clearly shown that Trussā claim was false - and had nothing to do with the Laffer theory.
Bored with this now.
Truss was right.
You do realise your article from Reuters was from 2022 and when tax rates went up to 25% this year, Astra Zeneca changed their mind about investing in expanding in UK and insteadā¦
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You do realise that having the last word is not the same as being correct?
And you do realise that Truss has never got anything right? Itās in her DNA to be wrong and make mistakes.
Truss was right about everything, thats why the globalists had to get her out.
The reason the country is in the sh1t now is because of high taxes and socialist policies.
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Ok, after this last delusional post from you Iām giving up on this thread. Your blinkered ideology means that you cannot accept reason and facts.
First, you do realise that the tories have been in power since 2010 so that means, according to you, they have been implementing these socialist policies?
Second, how do you square your criticism of globalists with your joy at so many global trade deals?
Third, you do know that Google and Apple (Starbucks, Amazon, etc. - you know these globalist companies) donāt really care about local corporation tax because they simply shift declared profit around the world until it all ends up in a tax free place like the Cayman Islands or wherever they stash their cash? (Again read the book āMoneylandā.)
Fourth, have you forgotten that Truss was the shortest serving PM ever because she and her plans were so truly bad that she cost the UK billions and came close to trashing the UKās private pension industry. Ta Liz.
Fifth, my information was independent, unbiased and accurate - Truss was intentionally misleading. And then you were repeating this wrong claim. Shame on you and your ideology driven biased claims.
The Tories have been implementing socialist policies since Johnson, we have the highest taxation in 70 years and are following stupid globalist WEF policies like net zero. We also had 2 years of authoritarianism through COVID and forced vaccine mandates, orders to stay at home and laws preventing people from seeing their families, all paid for by guaranteed basic income (or furlough as you would like to call it) etc. Before May we had years of austerity, Everyone knows now that a vote for labour is a vote for austerity further down the line, which is exactly what happened after Blair and Brown. Thankfully capitalism repaired the damage by the socialists just like it did in the 80s under Thatcher. Lowering taxes both times was key in the UK recovery.
Globalism and Globalisation are 2 different things. You donāt know the difference between them, like you didnāt know the difference between capitalism and corporatism. Iāll let you educate yourself on this because I donāt have time to do it for you.
Nationalism (such as EU nationalism) is never a good idea. Globalisation and free trade allow companies to trade freely across the world and compete without government interventions (such as the single market rules of the EU). Global trade deals are good deals when they work for everyone, EU trade deals (for example) only work in the interest of the EU. The WTO promotes free trade for these reasons.
Google and Amazon are in low tax Ireland to maximise profits through paying low rates of corporation tax. They also employ thousands of people which helped recover Ireland from the mass unemployment in 2008. These companies like all others who are global and have shares on international market pay for pensions. There is nothing illegal about moving money to where it best suits a company - read the Laffer Curve again and this time try and understand it. Moneyland is a book written by Oliver Bullough who, like you and other āsocialistsā donāt understand how the world works. I bet the profits from that book went under scrutiny by Bulloughs accountants to minimise his tax liabilities, but as usual, its a rule for them and a rule for everyone else. Especially those who are a lot more successful than him.
Truss was right, at the time, the stupidity of net zero had made the UK and (especially) Europe see inflation go up so much, people couldnāt afford energy bills when Putin invaded Ukraine, stopping gas supplies and hiking gas prices up on the markets as a result. So the only way to raise the Ā£ billions needed to help people facing Ā£6k winter energy bills was to raise the funds it from the debt markets. The problem was the sheer scale of about Ā£1.6 TRILLION tied up in liability driven investments in these markets, and it was the Bank of England raising interest rates to 3.5% that caused the whole thing to crash. This wasnāt Truss this was the BoE who, under the sheer incompetence of Andrew Bailey raised interest rates way beyond the level that the markets could cope with. The answer, was Bailey who had been caught asleep at the wheel had to intervene and pump 60 billion into it to stop the damage he caused by whacking up interest rates. Nobody in the BoE even told Truss what they were doing or what the outcome would be of putting up interest rates up so high and so soon. This was sheer incompetence by the BoE and I doubt they even knew themselves what would happen.
If anything, it was labour that trashed pensions under Brown when he first introduced PFI to avoid public spending he could no longer afford, then selling off the UK gold reserves and then raiding pensions not once but 3 times before they crashed the UK economy before resigning from office.
Truss was never intentionally misleading either, Iāve explained this.
Shame on me ? Thats hilarious.
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