Wednesday, February 13, 2008

The FT reports today on the apparent climb down over the levy charged to non doms.

The cabbage which the Chancellor of the Exchequer appears to have in his skull in place of a brain led him to believe that charging rich people who make this country an awful lot of money so that they would leave and go abroad was a jolly good idea.

£30,000 levied on people who bring the exchequer about £7bn in taxes a year. WELL DONE YOU!

is where most of the business in the city of London would have gone. It may well still go there unless we get a government who aren't economic retards, or unless we leave the EU.

I'm still wondering why he hasn't scrapped the proposal altogether. It's like leaving the gates to the Tower of London open and allowing any Tom, Dick or Vaclav to pinch the crown jewels, because that is what the City of London is to our country.

The hypocrisy of George Osborne is also staggering: writing a letter to Darling and hoping that people didn't remember that this bloody fiscal fiasco was one of his ideas in the first place, because the Tories are too scared to promise tax cuts, preferring instead to play along with some ridiculous idea that the state spends your money better than you, invests it better than private businesses and that tax cuts necessarily mean less money spent on public services and thus a decline in service.

Why don't these people appear to understand anything about fiscal policy? Haven't they heard of the laffer curve? There is an optimum rate for tax revenue and it ain't going to be at a higher level of taxation, just as the minimum levels of tax revenue (i,e zero) are gained at taxation levels of 0% and 100%.

But this appears to be a huge problem with our career politicians, who haven't really had proper jobs and certainly don't know about taking risks and starting up small businesses. They can't grasp that what we need is less government, less tax and less fuck ups from state run organisations who don't have the desire to stream line and be efficient because it's not their money in the first place and they get paid no matter what. When did it become a requirement for MPs to be as pig ignorant as possible? A House for mensa rejects, if you will. The fact that we have two opposition parties who really need to be taken to the office of fair trading for that misleading description because they don't appear to oppose anything except wage cuts.

It's like Philip Green. His wife owns most of the shares in his company and lives in Monaco. Philip pays himself a small wage on which he pays tax. Lewis Hamilton will proably join the other mega rich F1 drivers and assorted sports stars and live there also, because there they won't see millions of pounds of their cash going to the government and wasted on crap. Or MPs wives.

It's like I said to the Inland Revenue when I was doing my tax return and they wouldn't be helpful and send me the account details so I could pay them. I asked "wouldn't it just be easier if I bypassed all this and just set fire to this money, because that's essentially what this government are going to do with it."

They chose not to comment.

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