Crazy tax-cutting

[bensherman]

When will this myth ever be rumbled?

Lowering taxes has very little, if any, relationship to growth but a very big relationship with underfunding public services and pushing up borrowing ( as interest rates soar).

Expert after expert points out that companies investing are primarily driven by the general business outlook, the market opportunity, the cost of borrowing money and the availability of labour. The rate of corporation tax is a marginal consideration, although of course they will welcome a reduction and probably pass it through as dividends and bonuses.

Ah, but it will attract foreign investors. Again, not investors who will provide jobs and increase wealth, just those who can brass-plate here. For a handful of businesses it could attract, we pay the cost of ALL businesses, who have no intention to leave, simply paying less towards our education, infrastructure, healthcare, policing, and all the rest.

But the next PM is to be determined by 200,000 economic illiterates who don't know or care.

[Alikado]

When will this myth ever be rumbled?

Lowering taxes has very little, if any, relationship to growth but a very big relationship with underfunding public services and pushing up borrowing ( as interest rates soar).

Expert after expert points out that companies investing are primarily driven by the general business outlook, the market opportunity, the cost of borrowing money and the availability of labour. The rate of corporation tax is a marginal consideration, although of course they will welcome a reduction and probably pass it through as dividends and bonuses.

Ah, but it will attract foreign investors. Again, not investors who will provide jobs and increase wealth, just those who can brass-plate here. For a handful of businesses it could attract, we pay the cost of ALL businesses, who have no intention to leave, simply paying less towards our education, infrastructure, healthcare, policing, and all the rest.

But the next PM is to be determined by 200,000 economic illiterates who don't know or care.

We should be attracting investment with the attractions of our workforce and infrastructure not the Tax Breaks which are just robbing us and making it more difficult for the British companies, moving orders around to avoid tax like Starbucks was doing is plain wrong so is the use of 'fulfillment centres' where the order goes to one country which doesn't charge tax who then forward my order from China at no charge, the order arrives in a couple of days, the supplying company won't pay any tax and all the money stays offshore.
Companies who operate in this country who want to repatriate profits should pay a premium rate, it is the wealth that they are exporting.

[salus.populi]

https://threadreaderapp.com/thread/1...764827648.html

[local]

This is definitely one of the funnier reads on here, where the finest brains Southport has to offer led by the pencil procurement officer give us an economic masterclass.

Remember this is the person who thinks cheap imports don't depress prices.

I nearly laffered my head off.

[said]

https://threadreaderapp.com/thread/1...764827648.html

We are in a recession. Warnings of this were given last summer when Johnson advised people to start growing their own produce. In October 2019 it was announced in the States that the $ was under threat, and that America was to focus on home industries to cut back on imports. In January, 2020 a pandemic, that was not a pandemic, then it was a pandemic was electronically forecast with the aid of Dominic Cummings and brought forth a lockdown effectively closing many businesses down, that coincidentally reduced public spending.


"During recessions, of course, consumers set stricter priorities and reduce their spending. As sales start to drop, businesses typically cut costs, reduce prices, and postpone new investments."

The media fed the panic - then dropped it suddenly, as Russia became the main topic. The recession we are experiencing with high prices and cutbacks is being blamed on almost everything - e.g. Result of Covid, (Even though this recession started before that) Result of a World trade recession, Result of higher fuel prices, Result of Russia getting tough on corruption, etc., It is likely to go on for a while yet and prices will still increase, Mortgage repayments will increase when interest rates are increased, the cost of the National Debt repayments will increase,etc.,etc.,

"A recession is a downtrend in the economy that can affect production and employment, and produce lower household income and spending. The effects of a depression are much more severe, characterized by widespread unemployment and major pauses in economic activity. Recessions can also be more localized, while depressions can have global reach."

Read more:https://www.bloomberg.com/news/artic...ng-costs-surge

[bensherman]

This is definitely one of the funnier reads on here, where the finest brains Southport has to offer led by the pencil procurement officer give us an economic masterclass.

Remember this is the person who thinks cheap imports don't depress prices.

I nearly laffered my head off.

Never once did I say that. The topic was wages, an entirely different thing , which you patently don't understand.

[Alikado]

We are in a recession. Warnings of this were given last summer when Johnson advised people to start growing their own produce. In October 2019 it was announced in the States that the $ was under threat, and that America was to focus on home industries to cut back on imports. In January, 2020 a pandemic, that was not a pandemic, then it was a pandemic was electronically forecast with the aid of Dominic Cummings and brought forth a lockdown effectively closing many businesses down, that coincidentally reduced public spending.


"During recessions, of course, consumers set stricter priorities and reduce their spending. As sales start to drop, businesses typically cut costs, reduce prices, and postpone new investments."


The media fed the panic - then dropped it suddenly, as Russia became the main topic. The recession we are experiencing with high prices and cutbacks is being blamed on almost everything - e.g. Result of Covid, (Even though this recession started before that) Result of a World trade recession, Result of higher fuel prices, Result of Russia getting tough on corruption, etc., It is likely to go on for a while yet and prices will still increase, Mortgage repayments will increase when interest rates are increased, the cost of the National Debt repayments will increase,etc.,etc.,

"A recession is a downtrend in the economy that can affect production and employment, and produce lower household income and spending. The effects of a depression are much more severe, characterized by widespread unemployment and major pauses in economic activity. Recessions can also be more localized, while depressions can have global reach."

Read more:https://www.bloomberg.com/news/artic...ng-costs-surge

No we are not, it is FORECAST that we will be later this year, Saint Liz will save us!

[bensherman]

On the related issue of interest rates, I read a prediction that several water companies could go bust because of the sharp rise in interest rates.

The bigger privatised water companies , where they have invested ( if not through choice) in big infrastructure ( like the London Ring) have borrowed heavily to do it, while paying out large dividends to shareholders attracted to a business with captive customers . It reached the point, even before these rises, that Thames Water was told by OFWAT and then the government to slash its borrowing.

[Toodles McGinty]

https://threadreaderapp.com/thread/1...764827648.html

Excellent thread.

[Desert Region]

This is definitely one of the funnier reads on here, where the finest brains Southport has to offer led by the pencil procurement officer give us an economic masterclass.

Remember this is the person who thinks cheap imports don't depress prices.

I nearly laffered my head off.

Personally, I tend to agree with the majority of the economics-related explanations and points of view that bensherman puts forwards.

There's just an allowance to be made for warping due to the bias and the bias-induced hyperbole, for example, "But the next PM is to be determined by 200,000 economic illiterates who don't know or care."

Other than that bs is usually more or less on the money.

[bensherman]

Thank you

I wouldn't mind the odd dig. I know I'm not perfect and I can exaggerate.

But his tendency to reach first for abuse and ineffective ridicule tells me that he doesn't actually have any arguments. It's a shame really.

[local]

Personally, I tend to agree with the majority of the economics-related explanations and points of view that bensherman puts forwards.

There's just an allowance to be made for warping due to the bias and the bias-induced hyperbole, for example, "But the next PM is to be determined by 200,000 economic illiterates who don't know or care."

Other than that bs is usually more or less on the money.

I He's a blithering idiot I would rather tie my horse to the Titanic's anchor, each to his own I suppose.

[local]

Never once did I say that. The topic was wages, an entirely different thing , which you patently don't understand.

I'm so glad you put that it helps to confirm what I have been saying, you really have no idea.

Back in the real world real people are getting pay rises because the cheap labour from the EU isn't there to undercut them.
Just as my new found friend Jeremy said.

[said]

No we are not, it is FORECAST that we will be later this year, Saint Liz will save us!

Just because the 'experts' on the television have not reported it a such - you don't believe it.

Recessions do not happen overnight - they take months before they set in. Inflation then stagflation and on to recession. Inflation means companies profit and stock holders profit, recession means Landlords and lease holders profit. Everyone profits except Joe Soap.

If the Government can send large amounts money over to aid the Ukraine, and pay huge amounts of money to those over Covid, and pay out to the NHS - why can't it do the same for fuel and gas prices?

"Recessions are caused by the government, for a lack of oversight; and financial institutions, for predatory lending and unscrupulous bundling and selling of mortgage-?backed securities." Yeah Right!

The change in PM will be for that PM to be the fall guy for what is about to become.

[bensherman]

I'm so glad you put that it helps to confirm what I have been saying, you really have no idea.

Back in the real world real people are getting pay rises because the cheap labour from the EU isn't there to undercut them.
Just as my new found friend Jeremy said.

No
Again
Most AREN'T getting pay rises , and those that do are getting rises way behind inflation. If it were that simple, we wouldn't be having strikes.
The "cheap labour from the EU" never did undercut anyone. Because they took jobs we wouldn't do in places where we wouldn't live. Their absence is why we have so many jobs unfilled; pay rises are making no difference to that.
Johnson spoke about a "High skill, high wage" economy. Then did nothing about it. Unchanged skill levels and low investment, with rising wages are disastrous.