Blog description.

Accentuating the Liberal in Classical Liberal: Advocating Ascendency of the Individual & a Politick & Literature to Fight the Rise & Rise of the Tax Surveillance State. 'Illigitum non carborundum'.

Liberty and freedom are two proud words that have been executed from the political lexicon: they were frog marched and stood before a wall of blank minds, then forcibly blindfolded, and shot, with the whimpering staccato of ‘equality’ and ‘fairness’ resounding over and over. And not only did this atrocity go unreported by journalists in the mainstream media, they were in the firing squad.

The premise of this blog is simple: the Soviets thought they had equality, and welfare from cradle to grave, until the illusory free lunch of redistribution took its inevitable course, and cost them everything they had. First to go was their privacy, after that their freedom, then on being ground down to an equality of poverty only, for many of them their lives as they tried to escape a life behind the Iron Curtain. In the state-enforced common good, was found only slavery to the prison of each other's mind; instead of the caring state, they had imposed the surveillance state to keep them in line. So why are we accumulating a national debt to build the slave state again in the West? Where is the contrarian, uncomfortable literature to put the state experiment finally to rest?

Comments Policy: I'm not moderating comments, so keep it sane and go away with the spam. Government officials please read disclaimer at bottom of page.

Thursday, October 24, 2013

Minister McClay & National Government To Increase Cost Of Living For All.

From Rob Hosking behind the NBR pay-wall:

A stepped up effort against tax avoidance by multinational firms will feature strongly in Inland Revenue’s much-delayed compliance document, expected to be released within the week.

The document, Compliance Focus, is usually released at the end of July or early August and sets out the IRD’s priorities on tax for the coming year … The multinational dimension though is understood to be the main cause of the delay. Key to this is the impact of work by the OECD and other international agencies, along with other tax authorities, on what is called BEPS’ – base erosion and profit shifting - by multinational firms.

Put simply, this is involves a small number of high profile  firms – such as Amazon, Apple, Google, Facebook, Starbucks, and global rock bands such as U2 – shifting their declared profit, revenue and intellectual property to the most tax  advantageous regimes.

Let’s rewrite this to understand what is actually happening, remembering that taxation is a cost:

Minister Todd McClay and IRD will soon issue their document setting out the process required to increase the living costs of all hard working Kiwis. Minister McClay is effectively saying he demands higher prices for books, higher prices for the computer gear we all use, higher prices for that Starbucks latte over which to contemplate the higher costs of everything thanks to the tax take. While his department may have looked at the possibility of simply making our tax system more competitive, he's decided Kiwis have it too good, so by increasing the taxation cost of these firms, he can force them to raise the prices of their products and services.

Minister McClay is also saying that increasing the cost of taxation for these firms world-wide is a worthy part of a concerted one-world-tax-state attempt to slow up innovation in the private sector. Why would they want to squash innovation? Perhaps they are thinking this a good thing? Looking toward the new iPads coming out next month, I guess it'll mean we won't have to update our Apple shit so often. Who needs choice and freedom.

(Footnote: though by all means, send the IRD storm troopers in on that hypocrite Bono, who would strait-jacket us in those 'responsibilities' he won't wear himself.)

Related posts:

Amazon is the Hero, Not the Villain in the Piece.

No comments:

Post a Comment