The Laffer Curve Wreaks Havoc in the United Kingdom
05 Sep 2021 Leave a comment
Back in 2010, I excoriated the new Prime Minister of the United Kingdom, noting that David Cameron was increasing tax rates and expanding the burden of government spending (including an increase in the capital gains tax!).
I also criticized Cameron for leaving in place the 50 percent income tax rate imposed by his feckless predecessor, and was not surprised when experts began to warn that this class-warfare tax hike might actually result in less revenue because the reduction in taxable income could be more significant than the increase in the tax rate.
In other words, bad policy might lead to a turbo-charged version of the Laffer Curve.
Allow me to elaborate. In most cases, punitive tax hikes do raise revenue, but not as much as politicians predict. As explained in this three-part video series, this is because it takes a very significant reduction in taxable income to offset the…
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Can the Irish (Once Again) Save Civilization?
05 Sep 2021 Leave a comment
How the Irish Saved Civilization was a bestselling book in the mid-1990s.
Today, we’re going to consider an updated version, focusing on whether Ireland can save the world economy from Joe Biden’s plan for a global tax cartel.
This should be a slam-dunk issue. Ireland transformed itself from “The Sick Man of Europe” to the “Celtic Tiger” in part by adopting a 12.5 percent corporate tax rate.
How much of a tiger? Look at this data comparing per-capita gross domestic product in Ireland and France.
For what it’s worth, the Maddison data on gross domestic product makes Ireland look richer than it actually is (a result driven by largely by all the corporate activity).
So I also used World Bank data on gross national income to create a chart that tells a similar story, but with numbers that presumably are a closer match to actual economic conditions.
The bottom…
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Why zero-hours contracts are a good thing
05 Sep 2021 Leave a comment
The news that the number of people working on zero-hours contracts has risen to a new record high has prompted fresh calls for a ban. If you’re employed on one of these contracts and like it, tough. How on earth did we come to this?
To recap, a ‘zero-hours contract’ is simply a form of employment that does not guarantee a certain amount of work every week. Casual labour is of course nothing new, and at least part of the longer-term growth in the number of people saying they are on ‘zero-hours contracts’ probably reflects increased familiarity with the new term.
This flexibility is good for employers because it allows them to match supply to fluctuating demand, especially in sectors such as health and social work, education, hospitality, or delivery driving, where demand can be erratic.
However, this flexibility is also welcomed by many employees. People do not have…
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September 4, 476: Fall of the Western Roman Empire
05 Sep 2021 Leave a comment
By the time of Emperor Diocletian (r. 284–305), the idea that the Roman Empire had grown so large that it would be better managed by two co-ruling emperors, rather than one, had become established. After various divisions were made throughout the 4th century, the empire was firmly and permanently divided into a western and eastern sphere of imperial administration from the death of emperor Theodosius I (r. 379–395) in 395 onwards.
Though modern historians typically use the terms Western Roman Empire and Eastern Roman Empire to describe the new political situation, the Romans themselves never considered the empire to have been formally divided, still viewing it as a single unit, although most often having two rulers rather than one. Over the course of the 5th century, the western empire experienced a period of catastrophic decline. Not only were many of the rulers in the west generally lacking in competence, but…
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Why does Kuwait Exist?
05 Sep 2021 Leave a comment
in defence economics, International law, war and peace Tags: Arab oil crisis, economics of borders, Iraq war, Kuwait, World War I
The Wire – But you don’t ask, because you don’t want to know
05 Sep 2021 Leave a comment
in television
German climate groups plan legal action against car giants
04 Sep 2021 Leave a comment
Image credit: autocarbrands.com
Climate lawfare is bound to get more popular if it’s seen that courts are willing to believe IPCC theories of how the global climate works. But that smacks of presumption of guilt, with carbon dioxide as the offender, surely?
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German environmental groups on Friday announced a legal offensive against car giants Volkswagen, Daimler and BMW to force them to reduce emissions faster, emboldened by recent court victories in favour of climate protection, reports Phys.org.
Greenpeace Germany and Deutsche Umwelthilfe (DUH) said they have sent a claim letter to the three carmakers asking them to commit to more ambitious targets for reducing carbon emissions, including ending production of fossil-fuel cars by 2030.
If they do not respond to the letter in the coming weeks and halt their “illegal behaviour”, the NGOs said they are ready to file lawsuits in court.
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