British PM: Hey, why don’t we try lowering taxes to attract businesses?

posted at 5:31 pm on June 15, 2013 by Erika Johnsen

At the G8 summit going down in Northern Ireland over the weekend, British Prime Minister David Cameron will take the opportunity to once again decry the shady role of “tax havens” across the world and talk up his leading-by-example plans to clamp down on the ostensibly nefarious tax-haven activities of Britain’s crown dependencies and overseas territories, via the Telegraph:

The Prime Minister wants to persuade his counterparts at this weekend’s G8 summit to agree to a crackdown on offshore tax havens across the world and will announce that the UK overseas territories and crown dependencies, such as the British Virgin Islands, have signed up to an information-sharing agreement on tax.

Really, the audacity of countries that dare to lure businesses and wealth their way because of their more attractive tax schemes that don’t discourage competition! If Cameron really wants to stop companies from searching for worthwhile means to lessen their tax burdens, he should probably start by making it worth their while to stick around in the first place, instead of hating on other countries that are smart enough to — oh, wait, what’s that? He is doing that? Oh… well, good!

Speaking at an innovation conference in London on Friday, Mr Cameron said: “We want all our businesses to succeed and we are actually changing our tax system to try to encourage more multinationals to locate in the UK.”

Britain is on course to have one of the lowest corporation tax rates in the West from 2015, after it was cut to 20pc in the March Budget.  …

Writing in Friday’s Daily Telegraph, Ryan Bourne, head of economic research at the Centre for Policy Studies, said that the “shrill posturing” by MPs on tax avoidance was threatening “to cause long-term harm to the UK economy”. …

Mr Cameron said he was concerned about the relative failure of home-grown British companies to grow as quickly as foreign rivals.

While there may-or-may-not be a few legitimate concerns about the specific “tax havens” to which Cameron is referring, the larger discussion is too often used as a distraction from and an excuse for the crushing burden that governments place on companies and individuals via taxes and regulations that make it more productive for them to spend their time looking elsewhere for places to do business and store their money. Time and and time and time again, in even just very modern history, we see examples of countries suddenly ‘discovering’ that their gigantic tax codes are hurtful to economic growth and that they need to dial it back down — and it sounds like Cameron is actually trying to do something about it. Now if we could just get President Obama and the Democrats to think the same way…


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Brilliant!

Jaibones on June 15, 2013 at 5:33 PM

Are you daft, man?
Next thing you know, he’ll start carrying an Iron Lady handbag.

Another Drew on June 15, 2013 at 5:43 PM

He`ll cave.

ThePrez on June 15, 2013 at 5:44 PM

Now if we could just get President Obama and the Democrats to think the same way…

Do either have the capability to “think”?
That would be Counter-Revolutionary.

Another Drew on June 15, 2013 at 5:44 PM

Now if we could just get President Obama and the Democrats to think the same way…

I have some magic beans for sale. The liberal “lemming think” is that we have to make the US corporate rate higher AND tax overseas earnings before they are brought home. Too many talking heads on CNN and MSNBC speaking about a subject they know nothing about.

teejk on June 15, 2013 at 5:46 PM

bayam, please pick up the Courtesy Phone. And bring your Paulie Krugman doll with you.

Del Dolemonte on June 15, 2013 at 5:47 PM

Mr Cameron continues to be as clueless as his two predecessors, presumably because none of them ever had any business experience or had to struggle for something.

What the UK desperately needs is tax simplification, along with the removal of many laws and regulatory burdens that strangle commerce and stifle entrepreneurship.

If the UK would do those things it wouldn’t need to import multinational companies because it would be breeding and exporting them.

As for tax reductions … yes, a great idea but unless government spending is reduced the tax requirement will remain the same and hence “reductions” will be achieved only be adding complexity to hide the shuffling of money; and more tax complexity is somewhere near to the last thing the UK needs.

YiZhangZhe on June 15, 2013 at 5:50 PM

Crazy talk!

Cindy Munford on June 15, 2013 at 5:56 PM

YiZhangZhe on June 15, 2013 at 5:50 PM

Rational … meaning it will never happen.

ShainS on June 15, 2013 at 5:56 PM

Doesn’t Saudi Arabia own England? Have they approved this?

darwin on June 15, 2013 at 6:02 PM

And maybe if they stopped taxing thier population into oblivion they’d have more Brits.

Nah. Stupid thought.

WryTrvllr on June 15, 2013 at 6:04 PM

their

WryTrvllr on June 15, 2013 at 6:04 PM

Now that’s just crazy. Everyone knows people like to pay more in taxes, not less. What’s next, loosening up regulations?

rbj on June 15, 2013 at 6:09 PM

Off topic: The Indiegogo fundraising drive to buy the Tribune Company (so the Koch brothers can’t buy it) closes tonight. They are trying to raise $660 million. And so far, they have raised $208,493.

At the rate they are going, it would take them about 251 years to raise the $660 million.

http://www.indiegogo.com/projects/free-the-press-buy-the-tribune-company

J.S.K. on June 15, 2013 at 6:29 PM

Obama IRS Targeted And Infiltrated Christian Churches
On Thursday the Examiner provided an exclusive report indicating that the Obama administration had implemented a covert program beginning in 2009 that was intended to spy on conservative, evangelical Christian churches.

That program involved infiltration — sending in government operatives to join churches for the purpose of data collection. The government snoops would keep their eyes and ears open for criticism of the Obama administration, talk of Tea Party participation, conversations about gun ownership, and a number of other issues.

But a special report issued today by Fox News indicates that the program went far beyond infiltration and snooping. The IRS was used to harass Christian churches if they were identified as places where large numbers of anti-Obama citizens congregated for worship.

http://weaselzippers.us/2013/06/15/obama-irs-targeted-and-infiltrated-christian-churches/

pat on June 15, 2013 at 6:47 PM

I read an interesting essay by Vaclav Havel today. He claims that Europe needs to dissolve the EU in order for any of the current EU members to build prosperous societies again.

22044 on June 15, 2013 at 6:49 PM

Won’t be significant enough to make a difference. Much like the US, there are too many iron rice bowls that would be broken.

chimney sweep on June 15, 2013 at 6:50 PM

“…And so far, they have raised $208,493…”

That should be more than enough to cover the value of the LAT’s intellectual property.

Another Drew on June 15, 2013 at 7:17 PM

“…And so far, they have raised $208,493…”

That should be more than enough to cover the value of the LAT’s intellectual property.

Another Drew on June 15, 2013 at 7:17 PM

$208,493

Solaratov on June 15, 2013 at 7:55 PM

The Prime Minister wants to persuade his counterparts at this weekend’s G8 summit to agree to a crackdown on offshore tax havens across the world and will announce that the UK overseas territories and crown dependencies, such as the British Virgin Islands, have signed up to an information-sharing agreement on tax.

(snip)

Speaking at an innovation conference in London on Friday, Mr Cameron said: “We want all our businesses to succeed and we are actually changing our tax system to try to encourage more multinationals to locate in the UK.”

Britain is on course to have one of the lowest corporation tax rates in the West from 2015, after it was cut to 20pc in the March Budget.

Harold Macmillan tried something like this. His shtick was, once the corps move back in to the UK, enticed by the lowered tax rates, then they simultaneously raise the taxes again, and pass laws forbidding corps from moving assets or ops out of the UK. Unless, of course, they were willing to surrender about 95% of their assets “going out the door”.

I suspect this is where Governor Moonbeam and his cronies in California got the idea for “asset pursuit” to other states from.

Macmillan couldn’t get his own MPs to sign on. I suspect Cameron won’t have any problem in that department.

Keep in mind that Cameron is Mr. EU At All Cost. He’s not about to undercut the rest of his “partners” in Europe.

Or, in the words of Admiral Ackbar,

http://www.youtube.com/watch?v=4F4qzPbcFiA

Moral; You can trust a “conservative” in the EU… about as far as you can throw him. I’d say Cameron goes about fourteen stone.

clear ether

eon

eon on June 15, 2013 at 7:59 PM

This guy will be targeted by the bolsheviks and voted out of office next year for daring to use common sense.

locomotivebreath1901 on June 15, 2013 at 8:10 PM

No kidding?

itsspideyman on June 15, 2013 at 10:04 PM