One of the underlying important themes that the Tax Justice Network and I have emphasised over the last decade has been the continual shift of the burden of taxation from capital onto labour. As if evidence were needed that this trend is continuing, this was the headline from an email that I received this morning from the OECD:
Of course, the situation varies from country to country. It is the trend that is important, and that is a continuing explanation for the crisis that our economy, and that of the world at large, faces. Growth without a rising share of labour income is not possible: inequality prevents it.
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I think it is fair to say that much of the squeeze on labour is also from increasing rent (in its original economic meaning of the return to land) – and the fact that it is not meaningfully taxed. This is particularly felt by workers in terms of maintaining a roof over their heads.
Again, Carol, you are absolutely right! 35 years of blowing housing bubbles buy the financial sector is the MAIN drain, or syphoning of income from the broad population and is not even included in the inflation figures! But with a third of the Tory Party with fingers in the land/property pie (and a good few in Labour and Libs) Westminster is NOT going to look at this issue or even raise public awareness of it-save a few limp bleatings from Cable!
Capital continues to flit from one country to another as a butterfly does from one flower to tne next under the giant fraud called Globalization.
Meanwhile the economic “jackboot” continues to stomp all over the real creators of wealth….