Tax

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Sean O'Grady: High taxes could cause exodus to England

Radical as the Calman proposals may seem to the UK, such differential rates of taxation are a routine fact of economic life in almost every federal polity in the world and indeed for any taxpayer or business operating near an international border.

The states of the US, for example, impose a variety of taxes and duties on everything from tobacco to company profits. In Germany, each state is responsible for setting excise duties. In Australia the states taxed people, before the First World War induced the federal government to add to the tax burden. Citizens learn to live with it but in free societies there is a powerful safeguard against the most grotesque distortions: arbitrage.

Smuggling is the obvious manifestation of such economic adjustment but there are legitimate versions. If people who live in Dumfries, for example, have to pay 10p in the pound more in income tax than their neighbours over the border in Carlisle, then they will simply move. The loss of tax revenues as people drift from Scotland across the English borders would eventually force a Scottish administration to think again.

If flying from Glasgow becomes more expensive than leaving from Manchester, then again the forces of supply and demand will even things up, as passengers vote with their feet. And so on.

As every Treasury knows, the ability to levy high taxes is different in practice to what it appears to be, even in documents as thoughtful as the Calman report.

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Sean O'Grady: High taxes could cause exodus to England
[info]famulla wrote:
Tuesday, 16 June 2009 at 05:07 pm (UTC)
Can you, yes you tell me why we lose good authors? 191613 Format Book AuthorPritchard, W. E Edition[2d ed.] Description Stockport [Eng.] Polytech [1973]
274 p. 22 cm. ISBN0855050128 Subjects Income tax - Law and legislation - Great Britain
Income Tax (Paperback)
by W.E. Pritchard
(Author), David Murphy (Editor)
No customer reviews yet. Be the first. Out of Print--Limited Availability
When I was in London This book showed me all about TAX Now it is not in Where is it?
Exodus is gin, as UK needs money in all the fields. Forget the problem of the taxation in the other countries Have you seen Obama today. He has forgotten the General Motors, Fiat, BMW, liquidations and he is watching Iran. All are thinking the or there side will give more eggs. Why do you worry about the exodus in or out of UK? If they go you get employments if they come your rents and services go up Your airport fees BBC excluded, increase
I thank you
Firozali A Mulla
The leading contenders are Labour's Margaret Beckett, who spent almost £11,000 of taxpayers' money
[info]famulla wrote:
Monday, 22 June 2009 at 12:26 pm (UTC)
Sean. Here is another reason I would definitely like to come to UK. You see we have very tight security Gitmo like camps and the parliament in UK accept all sort of members, thieves including. My idea is if no one objects to my propositions and no malice to any, to come and appoint myself to the seat of speakers. The UK papers are very happy about the changes. Will you test my abilities and can you propose me. The cartoons of your papers depict the lunatics to the core. I love that sort of country as all have no money but in UK, I can steal.
The lunatics are taking over the asylum.
The leading contenders are Labour's Margaret Beckett, who spent almost £11,000 of taxpayers' money on gardening, Tory John Bercow, who 'flipped' his second home, and Tory Sir George Young, who claimed the maximum second homes allowance available for two years running. Had the Scotland yard cleared the speaker that is led today to the juke box to dance Cartoon 22/06/09
I thank you
Firozali A Mulla