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Friday, 16 March 2012

Good riddance to the fulfillment industry

Well the cockerels are crowing loudly about the end of LVCR, Richard Murphy has publicly stated that it is the end of VAT avoidance. He is absolutely wrong, but it is the end of 1000's of jobs in the Channel Islands. The companies themselves will survive and prosper of course.
Richard Murphy 

I have had some delightful talks with the Welsh Development Agency and Amazon both of whom have offered me viable and more profitable alternatives to what is on offer in Jersey, but I think that I, as a small Jersey business, will not be affected in any case from what I read of the intended implementation of this change. I am happy just to make ends meet, I don't want to earn enough to have to pay tax or social security, thank you very much.

I was more interested to see that Richard has banned from his blog -
"Persistent comments from those promoting libertarian ideals"
Richard and the Tax Justice Network refused to debate with the Centre for Economic Freedom and Prosperity, a libertarian think tank, on numerous occasions. He is a highly intelligent and capable man but he recognises that to support the Tax Justice Network one must agree with the fundamental tenet that Government is the Solution and we are incapable of looking after ourselves, whilst for those of us of the Libertarian persuasion Government is the Problem and it is for individuals to find their own solutions to their own problems. I find Richard's view incredibly arrogant and condescending but I am sure that he equally feels that Libertarians have it completely wrong.

There can be only one reason to avoid a debate and that is to avoid an inevitable defeat.

The UK would not have a problem if it operated at a reasonable level of VAT, it is solely because it is 20% that there is any problem. The Tax Justice Network simply works to protect over-spending irresponsible bureaucracies from competition from leaner and meaner jurisdictions. It is anti-free market. It supports higher levels of taxation by removing the checks and balances against such government extortion.

Still it is refreshing to see a man of Richard's stature accept that the major intellectual, sociological and political cleavage is formed across that divide. Ultimately the Tax Justice Network is a vocal supporter of bureaucracy and high taxation, as one would expect from an organisation which is entirely funded by those very bureaucracies. You don't get rich by biting the hand that feeds you and as Richard himself says, he is a very successful businessman.

But back to LVCR loss, personally I don't think it is that bad. There are too many people here anyway and I believe that we will inevitably see a decline in the population and therefore the market forces which have been at play to over-inflate property and rental prices will be removed and we can expect to see DEFLATION.

It sharply brings in to focus the culture of excess which has permeated our Civil Service, this just adds even more pressure to bring down the operating costs of the Government in Jersey. But what is the loss to Jersey of this industry of all those low paid workers anyway?

For businesses such as mine, which rely on international sales as a result of the woeful policies of the States of Jersey, the opportunity for greater profit not only exists but is now being forced upon us by the UK government. Profit which of course will be taxed at 0%, in Jersey.

Why did the Jersey government bother wasting our money on a court case it could never win and which even if they had won would have been of no ultimate benefit to Jersey to win anyway.