They Just Don’t Get It #1: the Taxpayers’ Alliance
The first in a regular series highlighting those who haven’t quite caught up with the changed political and economic circumstances. This fresh in from the Taxpayers Alliance website:
Huge deficits may make business tax reduction difficult in the short term, but if it is not carried out, more companies will go, which will only worsen Britain’s economic problems. Tough choices indeed, but now is the ideal time for a shake-up of the public sector and a more competitive business tax regime.
Where to start on this one? One place might be to point out that tax cuts for corporations might seem a little naive politically at a time when treasury revenues are shrinking, public borrowing is rising (in order to bail out our marvellous banking corporations) and when many are worrying about how they are going to pay for next week’s food rather than further subsidise big business. Here’s another: as the less ideological may have noticed, all the political momentum is now behind a shake-up of the private sector not the public sector. Last time I looked, the NHS wasn’t driving the economy to the brink of depression.
And by the way, as I’ve pointed out previously, companies are not leaving the UK because tax rates are too high but because some companies that rely on royalty and interest income are in dispute with the Government about tax arrangements following a European Court of Justice decision – it is wise to look through the corporate smokescreen sometimes.
I’ve got a feeling the Taxpayers’ Alliance might become a regular in this slot.