Sunday 26 August 2007

"More Money for Bastards"

This title of this post is a quote uttered by a panellist on the BBC show "Mock the Week" This is a usually funny topical news quix interspersed with jokes and stuff. The subject came up of new Conservative policies.
One panellist mentioned the policy of cutting taxes on business. "Which means", he said "More money for bastards".
One wonders just how to respond to such unfunny and crass stupidity. It's wrong on so many levels.
In the first place, taxes on business are taxes on shareholders. Many of these are not rich, and how can anyone say how many of them are "bastards"?
The sheer prejudice encapsulated in the remark is staggering. Suppose a panellist said "More money for the unemployed - means more money for lazy bastards?" Or "Help for immigrants - more money for welfare scroungers". Or "Moslems - they're all murdering bastards." Or "Christians - they're all hypocrites".
Only shareholders and businessmen, it seems. can be slagged off by the BBC.

On another level, who does he think creates the wealth that payes the tax that goes to teh BBC and pays his appearance fee? Without business there's no wealth at all.

And also, the easy to understand principle of tax incidence applies - who actually pays a tax.
Taxes on business don't fall on the business in a vacuum. It is a cost imposed on business, so inevitably raises prices. If business taxes were cut, we might see inflation fall but the businesses would be more profitable so wages can go up.

There's always a case to cut business taxes to nothing, on the grounds that the simpler the tax system the better. See Tim Worstall for arguments better than I can put it.

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