Posted: Fri May 11, 2012 10:31 pm Post subject: Re: New Ltd Company Formation
Didn't mean that to sound quite so bad (I'm an economist though, so I feel I'm entitled to criticise any economics related posts ).
I completely agree that public spending under the previous goverment was too high, but there's a big difference between that and saying that paying less tax is always better (which is effectively saying paying no tax is best), or encouraging someone to try to avoid paying tax that they're entitled to be paying.
The free market isn't the solution to everything either, negative externalities and all that ...
Well of course we have to make a distinction between the different types of taxes. For example, I believe that corporation tax should not exist. A company is either retaining its earnings or paying out dividends (which are taxed). When retaining earnings the company is growing and can hire more people.
With regard to income tax, I think this is more debatable. I would ideally vote for no income tax but rather a sales/consumption tax. If an individual is working to earn their money, then there is only a few select things they can do with that money (save/invest it, spend it, or give to charity). I believe in the case of saving and investing you do not want to tax that money as it is going to a good cause. We should encourage savings as banks will then have healthier balance sheets and can lend to small businesses (I strongly believe that we should be on a gold standard).
I strongly emphasize the spending because I believe government spending is far more destructive than even having pretty high taxes. If we had a limited size government then we could have low taxes. Up until 1913 when the Fed was established, the United States did not even have an income tax. I strongly believe that people should be entitles to keep what they work for, instead of working for the State then the government saying what you can and canít keep. This would seem like more of a free society to me and one where government spending would be controlled. Instead what we have are all various forms of taxes, artificially low interest rates etc. which are all designed to increase the power of governments. We usually have the excuse of war or terrorism in order to increase government power. My belief is that things are the wrong way round and if we had sound economic policies, limited government, did not invade and occupy places, we would all be much freer and much better off.
Hmm, pretty extreme views. I kinda get the sense that you've listened to Glenn Beck a bit too much and actually agreed with him ...
Posted: Sat May 12, 2012 1:35 pm Post subject: Re: New Ltd Company Formation
Haha, nah I'm a staunch monetarist and generally believe fiscal policies aren't the way to get an economy out of recession - I really do believe austerity is the best policy for us at the moment (although I don't necessarily agree with the way in which it's being deployed by the current government), despite how painful it is for a lot of people.
However, anyone that has a pragmatic bone in their body should realise that, in a civilised, developed economy there is a need for goverments to intervene in order to ensure resources are allocated efficiently - if the economy was left to itself then we wouldn't have roads, only the richest people in society would have adequate healthcare, and anyone that didn't have a job would live on the streets. Ignoring the impact on society of these things, the economy would also obviously suffer as a result too.
In order to pay for these things, taxes need to be collected. We could argue forever about the most efficient tax system, but in reality we're not going to see a flat tax on consumption at any point in our lives, and in practice it almost certainly wouldn't work for an economy of our size anyway.
The real argument (if we're agreed that fiscal policy to drive growth is not the way forward) is about the size of taxation/governement spending - your views are extreme because you appear to think there should be hardly any, whereas there are very few credible economists who would agree that goverment intervention should or could be at such a low level.
Posted: Mon May 21, 2012 10:59 pm Post subject: Re: New Ltd Company Formation
What is your opinion on the general direction of our economy? I knew what was happening years ago and put my money in gold and silver.
The government has completely fu**ed up our economies. The ironic thing is that free markets got blamed when it was going against the free market which caused this mess. Do you agree that major cuts are needed? I think the Conservatives are trying to do the correct thing but they will never make as big cuts as to what is needed. What happens when interest rates rise (which will happen in order to prevent major inflation)? Our economy will be in a major recession and the interest on the government debt will go through the roof. We need to make huge cuts and deregulate/slash taxes. This will make us more competitive and allow the private sector to grow.
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