Attracting outside activity by providing a reduced tax break that is rapidly copied by other countries isnt stimulating growth though, it is just stealing it from other countries and it will generally get stolen back a year or so later, massive corporations may use Ireland or the Isle of Mann as their 'headquarters' but they dont actually employ anyone or do business there, its just a mail box they use to eff over the rest of us by not paying taxes here in fact most tax havens are for the locals poverty stricken crap holes
It is stimulating growth in your own country. Like I stated the Isle of Man has a virtually non-existent poverty rate. GDP is $80k USD per capita, about twice that of the UK.
Why does it matter if that wealth is coming from an outside source? The question was, can the population benefit from tax cuts designed to give people at the top more economic growth, of course they can.
Once again, it's a matter of the quality of those tax cuts. Tax policy always needs to be directed, as it has a profound effect on behaviour.
We should be far more concerned with streamlining our regulatory processes than reducing taxes.
For example, access to housing is one of the biggest drivers of inequality in this country and it has almost nothing to do with taxation. The issue is centred around how difficult it is to build enough housing supply to meet demand.
I disagree strongly, that housing prices have nothing to do with tax policy. Foreign capital inputs certainly play a large role in housing prices, but so does domestic demand. Low interest rates allow people to borrow large sums, as long as they have a down payment. Current tax policy allows certain people to far more easily build a down payment than others.
Lots of local people are continuing to buy property. The vast majority of sales are too locals.
Attracting outside activity by providing a reduced tax break that is rapidly copied by other countries isnt stimulating growth though, it is just stealing it from other countries and it will generally get stolen back a year or so later, massive corporations may use Ireland or the Isle of Mann as their 'headquarters' but they dont actually employ anyone or do business there, its just a mail box they use to eff over the rest of us by not paying taxes here in fact most tax havens are for the locals poverty stricken crap holes
Is that really true in the case of Ireland? It used to be one of the poorest countries in Europe - Greece poor - and now it’s in the top third. They leveraged a strong education system and low corporate tax rate to attract businesses that provided knowledge economy jobs and stopped the brain drain out of the country. Dublin used to be a sleepy and grimy little city that young people left as soon as they could, and now it’s a global magnet for talent.
Up until Trump’s tax cuts, Sweden had lower corporate tax rates than the U.S. And that wasn’t a temporary blip. The Scandinavian model is ensure a healthy and educated population, attract and keep businesses with low corporate tax rates, tax citizens who work for those businesses at high rates, and use the revenue to pay for universal public services that ensure a healthy and educated population.
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It is stimulating growth in your own country. Like I stated the Isle of Man has a virtually non-existent poverty rate. GDP is $80k USD per capita, about twice that of the UK.
Why does it matter if that wealth is coming from an outside source? The question was, can the population benefit from tax cuts designed to give people at the top more economic growth, of course they can.
Once again, it's a matter of the quality of those tax cuts. Tax policy always needs to be directed, as it has a profound effect on behaviour.
saying the Isle of Mann has a non existant poverty rate is like saying the British properties has a non existant proverty rate, it has a population of 80,000 odd about half of whom are just multi billionaires who moved there to live on a yacht, it has no industry or internal economy beyond being mail box drops for corporations and taking care of the billionaires, prior to dropping its taxes to copy the Channel Islands it was a farming/fishing community of around 45,000 that made half its income from the motorcycle race, it had no poverty then either frankly it just wasnt full of billionaires
It is stimulating growth in your own country. Like I stated the Isle of Man has a virtually non-existent poverty rate. GDP is $80k USD per capita, about twice that of the UK.
Why does it matter if that wealth is coming from an outside source? The question was, can the population benefit from tax cuts designed to give people at the top more economic growth, of course they can.
Once again, it's a matter of the quality of those tax cuts. Tax policy always needs to be directed, as it has a profound effect on behaviour.
Moving a companies address to a tax haven isnt stimulating any growth, the company isnt getting bigger, it isnt building more products or factories it is just paying taxes in a different location at a lower rate in fact I would posit it actually reduce overall growth as the company is now less able to be incentivised to actually grow because the country where the production happens no longer have tax write offs as a tool to spur growth in their arsenal
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I disagree strongly, that housing prices have nothing to do with tax policy. Foreign capital inputs certainly play a large role in housing prices, but so does domestic demand. Low interest rates allow people to borrow large sums, as long as they have a down payment. Current tax policy allows certain people to far more easily build a down payment than others.
Lots of local people are continuing to buy property. The vast majority of sales are too locals.
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Originally Posted by afc wimbledon
Moving a companies address to a tax haven isnt stimulating any growth, the company isnt getting bigger, it isnt building more products or factories it is just paying taxes in a different location at a lower rate in fact I would posit it actually reduce overall growth as the company is now less able to be incentivised to actually grow because the country where the production happens no longer have tax write offs as a tool to spur growth in their arsenal
Yeah. This is the problem with a Global Economy and it goes back to my original point.
These tax solutions have to be fluid. If you over-tax in one area industries which are fluid will simply move to another jurisdiction.
It requires legislation to not only be reactive, it needs to be proactive.
But more than that, it needs to be actually thought out. "Lower Taxes" is not a solution. It can be part of a solution if its followed up with other Economic tools intelligently.
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There are many examples where countries have drastically increased the livelihood of their citizens by giving tax breaks to corporations, encouraging corporation to move into their countries. Ireland is a great example. The movie industry in BC. The Isle of Man has one of the highest per capita GDPs and virtually non-existent poverty.
I don't know if an island with a population of 84,000 that already has had an outstanding standard of living before this concept was a thing, is a good example of why it works.
The island has a shrinking and aging population. Young people don't stay there because there is little opportunity. In recent years, the flight of young people and working class looking for opportunities elsewhere has been one of their biggest social issues. The other major one is increasing the age of retirement because of their decreasing workforce and pressure on the pension system.
It might be a good example of a place where trickle down economics can exist and be contained with minimal harm, but I don't think it has been that great either. It's easy to claim zero poverty when the poor are forced to move away due to economic pressures.
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Moving a companies address to a tax haven isnt stimulating any growth, the company isnt getting bigger, it isnt building more products or factories it is just paying taxes in a different location at a lower rate in fact I would posit it actually reduce overall growth as the company is now less able to be incentivised to actually grow because the country where the production happens no longer have tax write offs as a tool to spur growth in their arsenal
Actually I think it highlights the issue quite well.
Plus if you overtax you not only hamper the industry, but you run the risk of the industry just leaving for another country.
A series of dubious rationalizations and non sequiturs is not an interesting opinion.
Makes perfect sense. I wonder why no one has ever find the perfect economic model. It's apparently just blatantly obvious what it is and it applies to all situations....
Yeah. This is the problem with a Global Economy and it goes back to my original point.
These tax solutions have to be fluid. If you over-tax in one area industries which are fluid will simply move to another jurisdiction.
It requires legislation to not only be reactive, it needs to be proactive.
But more than that, it needs to be actually thought out. "Lower Taxes" is not a solution. It can be part of a solution if its followed up with other Economic tools intelligently.
I would never argue that lowering taxes is the only measure or that we always need to lower taxes.
There are many situations where increasing taxes is warranted.
