Changes recommended in taxation regime

Every now and again there are rumblings about the need to reform the UK tax system: not just income tax and council tax, and more importantly vat, the tax on fuel, and the tax on greenhouse gas emissions. The Mirlees review, to be published on Wednesday, argues that “sweeping reforms” are necessary. To income tax, […]

Increasing sentiment against wealthy?

Barack Obama was today expected to say that he would veto any deficit reduction plan that does not explicitly target millionaire taxpayers. And in the UK, rather more weakly perhaps, Vince Cable was expected to “ramp up rhetoric against the wealthy” at the LibDems conference, calling for a ‘consultation’ into executive pay. This follows his […]

“Greece should default and abandon the euro”

Here’s one solution to the eurozone crisis: Greece defaults and leaves the eurozone, returning to the drachma, enabling it to weaken its currency to compensate for any future lack of competitiveness (or strengthen in response to excess competitiveness). Existing creditors of the Greek government form an orderly queue and negotiate the existing debts. And holidays […]

Financial innovation: top to bottom

Companies in the US and UK, faced with a lack of willingness from the banks to lend, have been raising money by issuing ‘mini-bonds’ direct to customers. Similar to the debentures issued by the All England Lawn Tennis Club in Wimbledon, they can offer customers a mix of goods and services (tennis tickets, chocolates, shaving […]

Bank of England may shift QE into riskier assets

As concerns mount over the state of the economy, George Osborne has said that he sees no barriers to a further round of quantitative easing, possibly moving into riskier asset classes than gilts. Adam Posen, an external member of the Bank of England’s monetary policy committee, is expected to call for the Bank to do exactly […]