Divorcing Gordon's ugly model economy


We have already seen tax receipts fall this year, noted by Tax Freedom Day's move to May 14th and the latest news is that they are set to continue to fall. McDonalds have decided to kick Gordon Brown where it hurts. They announced their move to Switzerland on Monday so to avoid being punished twice for being successful. They are not the first to move and it would be a surprise if they were last. But this also means with the companies go their high salaried directors thus making it a double hit upon the UK government's tax fund. As well as the wider economy where they would spend their money.

The Prime Minister has been successful in only one thing during his time at both Number 10 and 11 Downing Street: destroying the UK economy. The list of companies that have moved abroad in the past eighteen months include, "...WPP, Shire, Regus, Henderson, Charter, Beazley, Brit Insurance and UBM." They have moved because the UK has failed to remain competitive. These failings are the fault of Mr Brown entirely and his limited knowledge of the real world.

When governments seek to raise funds through higher taxes they should first consider whether their business environment is conducive to growth. If there is no chance of economic growth then taxes have to remain the same or be cut to attract businesses. What current governments are undertaking is a mass suicide pact: attempting to keep their spending levels at the pre-crisis levels through higher levels of taxation, greater borrowing and increased enforcement. As seen above, all detrimental as companies give up and move to places more conducive for their business to survive and grow.

When will governments wake up and recognise what works to make a successful economy?