Madsen Pirie writes for the Times on EU subsidy of rapeseed

Madsen has a piece in today’s Times (paywall). He links the yellow fields of rapeseed that are making hay fever sufferers sneeze and wheeze to EU subsidies. After the Canadians bred a low acid version of rapeseed in the 1970s, the EU originally subsidized the seeds and the planting of it, not the actual crop. Then it went on to subsidize it for making bio-diesel, because it wanted a renewable energy source. So our green fields have been overtaken by a lurid yellow that many people dislike, and hay fever sufferers dash to the chemist’s in large numbers.

By careful breeding, Canadian scientists produced a low acid version. Rapeseed was transformed, and spread rapidly across Britain, changing the look of the spring landscape with its lurid yellow flowers. Its UK production soared from about 1,000 tonnes in 1970 to more than two million tonnes in just a few years.

It was not the crop itself that made it a farmers’ favourite but the EU subsidy paid to those who planted it. The EU paid cash not for the crop that resulted but to fund the seeds and planting. It was a bonanza for landowners.

Read the full article here (paywall).

The Ayn Rand Institute Europe

Today in Copenhagen is launched the Ayn Rand Institute Europe. Its mission is to promote awareness and understanding of Ayn Rand’s philosophy of objectivism, and to spread awareness of her life and work, including her highly influential novels The Fountainhead and Atlas Shrugged.

Heading up the programmes is Annie Vinther Sanz, originally Danish but now living in France, who has spent two decades in international business and now heads up her own consulting firm. And she is fluent in six languages (don’t you hate people like that?).

Lars Seier Christensen, CEO of Saxo Bank, is chairing the new Institute’s advisory board, and the event takes place at Saxo Bank’s impressive headquarters. Some 300 people are expected at the launch, which includes short talks by Christensen, the head of the Ayn Rand Institute in the US Yaron Brook, and our own Eamonn Butler.

Eamonn admits that he is not an earnest devotee of Ayn Rand, though he shares some of her conclusions – like the importance of free-market capitalism, the rule of law, property rights and a robust system of justice. But that, says Yaron Brook, is exactly why he has been invited to give the main talk. Eamonn is strongly aware of Rand’s importance to the intellectual right and her ability, through her novels in particular, to win people over too it.

Many young people, in fact, have been won over to the ideas of capitalism, and a belief in individuals as ends in themselves rather than mere cogs in some collective, by reading Rand. In the words of Jerome Tuccille, ‘It usually begins with Ayn Rand.

Rand, Eamonn will say, has many supporters in the United States, where she lived for most of her life. The former Federal Reserve Chairman, Alan Greenspan, was a member of Rand’s inner circle. And her work influenced many other notable people, such as the former head of BB&T bank and of Cato, John Allison; Supreme Court Justice Clarence Thomas; Star Trek creator Gene Roddenberry, and PayPal creator Peter Thiel. Entrepreneurs, indeed, still name their children after her or her fictional characters.

She has, perhaps, less traction in Europe. That may be because the American right is more concerned with the protection of individual liberty, while the European right is more about conserving existing institutions. But as a result of today’s launch, there is no doubt that Rand is about to become even better known, and much more influential, in Europe too.

New ASI paper: Non-Sense

Out today is a new ASI briefing paper examining Ed Miliband’s proposal to end the non-dom provision in the UK tax system.

It says:

  • Being a UK resident with non-domiciled status simply means that one does not intend to remain indefinitely. The tax system requires residents to be taxed on their foreign income. Non-doms resident in the UK elect to be taxed on either the arising basis (their worldwide income is taxed automatically) or the remittance basis (they are only taxed on worldwide income if they bring it to the UK). 2008 reforms mean that after 7 years of UK residence, non-doms who choose to be taxed in the latter way must pay a yearly fee of £30,000 (rising to £50,000 after more years of residence).
  • Ed Miliband has claimed that there are 116,000 non-doms but this ignores those of the UK’s 400,000 international students and 6 million foreign-born workers who did not have to file a self-assessment form and those who did file it but did not tick the non-dom box. It is estimated that something like 1 million are not permanent residents, so are by definition non-doms.
  • The rules introduced by Labour (and supported by the Tories) in 2008 ended up only hurting less wealthy non-doms and did nothing to really wealthy ones: electing to be taxed on a remittance basis benefits only those with very high foreign incomes.
  • While most countries tax worldwide income of residents, a significant number including the UK have exemptions for certain people (mostly foreigners) so that they only pay taxes on local income.
  • There is a substantial literature showing that tax systems are very important in deciding where top talent goes. It tells us that punitive changes to the UK tax system could discourage the most valuable potential immigrants from footballers to inventors.
  • Changing how we determine someone’s domicile is likely to have unintended consequences. First, making it easier to acquire a new domicile might reduce inheritance tax receipts, as UK domiciled residents of foreign countries currently pay UK death duties on their worldwide estates. Second, changes to the concept of domicile would have repercussions in other areas of law, such as matrimonial matters and determining the validity of wills.
  • The ethical justifications for Ed Miliband’s view that it is immoral that non-doms do not pay tax on their foreign income are deeply contentious. There is no principled moral case for taxing more than local income.

You can read the full paper here

Logical Fallacies: 20. Argumentum ad numeram

 

The final instalment in Madsen Pirie’s series on Logical Fallacies; here he looks at the ‘argumentum ad numeram’.

You can pre-order the new edition of Dr. Madsen Pirie’s How to Win Every Argument here

Logical Fallacies: 19. Wishful thinking

 

In his penultimate video on logical fallacies, Madsen Pirie takes a look at ‘wishful thinking’.

You can pre-order the new edition of Dr. Madsen Pirie’s How to Win Every Argument here