[Re: Imagine if the price of food had gone up as fast as that of homes, Friday]
This article is absolutely correct about the astonishing rise in the cost of the average house. But most pernicious is the (connected) average rent payment. It’s risen enormously in real terms, and renters don’t even have the added benefit of owning the overvalued asset at the end of it.
It’s not just house prices that have risen beyond what is sustainable, it’s the cost of owning a home. Council tax doubled from 1997 to 2010.
[Re: MPs criticise UK tax system in Google report, Thursday]
All costs and taxes on production (not just corporation tax) accumulate down the supply chain to be paid by the consumer. Even food prices, supposedly tax free (because of the VAT zero rating), contain hidden taxation. If the government taxed the consumer directly to the extent necessary, it would expose the huge burden the state actually imposes. Instead, it discretely collects money by inflating the costs of goods and services. Who’d willingly pay nearly 50 per cent tax on a cucumber?
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Best wishes to my former colleague Paul Tucker in his future career.
Far from a moral duty not to avoid tax, companies have a duty to pay no more than legally required.
Market up because consumers less confident because market down.
Congratulations to Tucker for his public service to the Bank of England, City of London, and UK economy.