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Tag Archives: Tax competition

Competition Is Bad And Must Be Stopped, Says @RichardJMurphy

This ‘competition’ thing really must stop. We need a level playing field. It cannot be right that car maker A who produces, say, a better quality vehicle for the same price as car maker B, can then take so many of B’s customers. Or that maker C produces a less well-appointed car than maker D, charges a lot less for it, and again takes so much more market share.

What about, instead of buying a car from our choice of dozens of manufacturers, we simply acquire a car from any one of them and then the price we pay is ‘fairly’ apportioned between all the makers – regardless of who you actually ‘bought’ the car from?

Of course, the method of calculating this apportionment ‘would be a huge task’.

Yet we could then apply the same logic to, say, the supply of and payment for state-run services. Maybe something like this intellectual colossus of the economic firmamentsuggests:

… we can recalculate what Amazon should pay here in the UK using the unitary apportionment formula method of taxation …. We split the profit in accordance with a formula.

…we need radical corporation tax reform in the Uk and worldwide. IUnitary apportionment formula taxation stops tax haven abuse of countries like the UK.”

Multinational siting HQ in low tax country shocker!

By ‘tax haven abuse’ Murphy means, of course, tax competition, and naturally the EU leans towards the view that while competition in the private sector is a Good Thing (and it is), when it comes to themselves tax competition between countries is a Very Bad Thing. We must create and maintain the cartellevel playing field and all that.

Ritchie does have it right, briefly, here though:

… we need radical corporation tax reform in the Uk …

We do – we need to abolish it.

P.S. Christie, as ever, has also had a swipe.