Comments on: Osborne’s corporation tax cut will not boost private sector output

By: Aaron Peters

Aaron Peters — Thu, 28 Jul 2011 09:46:53 +0000

@Rolo_Tamasi if you listen to facts, evidence rather than hubris read this http://bit.ly/qdsx1x

By: boredlondongurl

boredlondongurl — Tue, 01 Feb 2011 00:15:43 +0000

RT @lisaansell: https://www.leftfootforward.org/2010/06/osbornes-corporation-tax-cut-will-not-boost-private-sector-output/

By: lisaansell

lisaansell — Tue, 01 Feb 2011 00:09:58 +0000

https://www.leftfootforward.org/2010/06/osbornes-corporation-tax-cut-will-not-boost-private-sector-output/

By: aaronjohnpeters

aaronjohnpeters — Tue, 01 Feb 2011 00:01:58 +0000

A short piece that disputes some of the thinking implicit in the Institute of Directors position on tax http://bit.ly/bjN8PS #ukuncut

By: ES-137.com

ES-137.com — Thu, 10 Jun 2010 03:34:17 +0000

MLM Technology Corporation and Victory ES 100 Review…

I found your entry interesting thus I’ve added a Trackback to it on my weblog :)…

By: James Doran

James Doran — Sat, 05 Jun 2010 21:46:16 +0000

RT @leftfootfwd: Osborne’s corporation tax cut will not boost private sector output http://bit.ly/9En1vp

By: John Ruddy

John Ruddy — Thu, 03 Jun 2010 17:39:42 +0000

RT @leftfootfwd: Osborne’s corporation tax cut will not boost private sector output http://bit.ly/9En1vp

By: Aaron Peters

Aaron Peters — Thu, 03 Jun 2010 16:17:38 +0000

California is also bankrupt. What stimulates growth in California is incredibly talented, dynamic individuals – sufficiently capitalized through high risk venture capital to pursue their start up dreams. If you look at the 2010 Global Innovation index South Korea and Sweden are as innovative as America (if not more so) with higher tax economies. Key difference is that their total external debts (public + private debt owed to non-national creditors) is also comparatively v. low.

California’s performance is all about venture capital funds possesing investor cultures that aren’t incredibly short termist as they are over here – thats why Berners-Lee and Wolfram made their mark in the States and not the UK – very little to do with tax all to do with an abundance of seed capital for great ideas and a risk-loving culture.

FYI – between 1979-1997 under ‘low tax’ Tories gdp growth averaged 2% in the UK per annum. Indeed the economy was 5% smaller in 1983 than it was 1979. Cross-verify if you wish.

If we can combine the high risk venture capital and can-do culture of California with European levels of human capital and infrastructural investment. We will enjoy extraordinary growth.

Low tax in isolation is nowhere near enough. If only it were that simple.

By: Anon E Mouse

Anon E Mouse — Thu, 03 Jun 2010 15:42:17 +0000

Aaron Peters – The economic output of California is huge and their personal tax rate is 10.66% – surely it follows that lower taxes stimulate growth?

By: Aaron Peters

Aaron Peters — Thu, 03 Jun 2010 14:37:57 +0000

Hi Tom. The main point is that the tories have picked a very unnuanced and simplistic solution to solving the major problems of the private sector in the UK. The facts are we already have an incredibly effective corporate tax regime (more so for a Hayekian like yourself!) Indeed it is, after what will happen to capital gains tax, one of the few taxes that would be judged to be already appropriate for a market liberal (given the parlous state of the public finances) unlike say the 50% tax rate for example.

The undoubted problem we have, and we all most recognise it, is a deficit in human capital and infrastructure vis-a-vis our main economic competitors and it is imperative we invest in these areas with both public and private capital. South Korea has 80% of under thirties going to university (doing proper subjects btw), Brazil is developing high speed, China has Maglev and what do we do? Engage in a race to the bottom.

These are the key areas; high speed rail, an ultra highspeed broadband network, universal literacy, universal digital inclusion, much, much more investment in science and hi tech (the scrapping of the Semantic web institute at the BIS for £30 million was profoundly myopic) and accomodating much more high-tech venture capital in the UK (there is more of this in California than in the whole of Europe).

Regarding your comment “the ludicrous claim that aggregate human capital can only be raised by the state” – it is fair to say that universal literacy, numeracy and widespread good health only occur in the developed world with the rise of state intervention in the latter half of the nineteenth and twentieth centuries. I would suggest a good dose of Galbraith and Sen for your Thatcherite fever!