The corrosion of trust

To be honest, I’ve never liked politics. In my professional career, I always tried to put substance above form. It’s always seemed to me that politics is the reverse. Appearance is all important, substance is secondary. Here’s an interesting post on another blog about policing. This is not a party political thing. It’s about all parties. The Big Society is turning into the Big Lie. However, we’ve been lied to about the release of the Lockerbie bomber. We’ve been lied to about the war in Iraq. We’ve been lied to on MPs’ expenses. I am beginning to fear for the future of democracy. Perhaps we are closer to Egypt than we dare to admit.

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6 thoughts on “The corrosion of trust”

    1. Very amusing. Although a lot of the maths and assertions are dubious (being kind) the underlying message that you are paying tax, not the corporation is true. Corporations don’t live in the ether, they look to maintain profitability because that’s how the management get paid. So any tax increase will get passed on to customers if they can. That’s why the bank tax was actually a bad idea as bank customers ended up paying. Ultimatley all corporations are owned by people either individual or through collectives (like pension schemes of mutual funds), so in that sense any tax is ultimately paid by individuals as well. The biggest problem for governments is that large corporations are geographically mobile, so putting up corporate taxes usually leads to an exodus to lower tax countries. Ironically, raising corprorate tax in one country often leads to a lower tax take in the originator but a tax transfer to lower tax domiciles as companies relocate. Ireland is very good example, which explains why Germany keeps trying to force Ireland to raise its corporate tax rate. Because large corporations are mobile, rising corporate tax pushes an even greater burden on smaller companies and individuals.

  1. Yes, any tax increase levied on the corporations are in turn passed onto the customers, us! Many years ago we watched, particularly the big US Corporations in IT, move from the UK to Dublin, Ireland which was their tax haven. I knew people in an IT security company over here kindly offered their same jobs in Dublin. Of course the company knew many would not take them up on their kind gesture of relocation and slip out of redundancy payments!

    Corporations seem to float on the high seas and chose a particular place of ‘berth’ which better suits their business interests. Much the same as the individuals whom hold the shares!

    1. You need to be very rich as an individual to have the same luxury of choosing your domicile. For you and me, it’s not an option.

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