Forget avoidance outrage: this is what we really think about tax

Rather like a quantitative version of Hello! magazine, the Panama papers made headlines everywhere. Read all about the vast amount of money a particular celeb has got stashed away. Salivate, be titillated or be outraged, according to your fancy. The story was covered heavily by the Guardian, the in-house newspaper of the metropolitan liberal elite. […]

The Subtle Costs of a Mansion Tax

An exciting email pinged into my inbox at the end of last week. It was a link to the contents of the latest issue of the American Economic Association’s journal ‘Economic Policy’. For most people these are not usually as gripping as, say, a Ken Follett novel. But there, nestling amongst thickets of algebra, is […]

The 38 per cent tipping point on tax

Ed Miliband’s proposal to tax non-doms more harshly may be good, populist politics. But does it make economic sense? At most, the yield will be around £1 billion, even if people do not alter their behaviour in response to the change in policy. The actual amount generated could even be negative if enough non-doms leave the […]

Corporate tax is getting easier to avoid. Time to abolish it.

Corporate tax avoidance is once again prominent in the news. When Jean-Claude Juncker, the new European Commission president, was prime minister of Luxembourg, the country seems to have operated as a vast tax shelter. Leaked documents have revealed that special tax arrangements were agreed by his country with over 300 multi-national companies.   Getting a […]

Frangleterre… Labour Mobility undermines Tax and Spend regimes

Pimlico Plumbers will be a familiar brand to many readers – it has a prominent advert on the approach into Waterloo station. But the company is now calling for plumbers who are fluent in both English and French, and says applicants will be interviewed by a native French speaker. This is just the tip of […]

German revival exposes deep fissure within Europe’s economies

In the 1990s and early 2000s, Germany was seen by many as the new ‘Sick Man of Europe’. Between 1991 and 2005, GDP growth averaged only 1.2 per cent a year, compared to 3.3 per cent in the UK. Since then, the German economy has revived dramatically. The recovery in the German cluster of economies […]

Onion Economics

There is something about onions which brings out the worst in bureaucrats. Orlando Figes’ A People’s Tragedy chronicles the early years of the Russian revolution. Under war communism, the Bolsheviks attempted to exert state control over the entire economy. A long list of vegetables was drawn up, specifying the prices at which they could be […]

Have Bankers Been Practising Socialism? The Debate About the Top 1 Per Cent

Boris Johnson has got into trouble for his statement that it is “surely relevant to a conversation about equality” that just 2 per cent of “our species” has an IQ over 130. Over the past couple of years, the Occupy movement has made headlines by attacking the top 1 per cent. The summer 2013 edition […]

Is the ‘rent-seeker’ dying out?

The concept of the “rent seeker” is one of the most valuable in the whole of economics. The activity of rent-seeking involves obtaining money by manipulating the social or political environment in which economic activity takes place, instead of getting paid for creating new wealth. It is a part of public choice theory, for which […]