Is The Government Stupid Or Does It Just Think We Are?

Aaargh….I've just noticed this latest brainwave from our dear leaders:

Policy headline: From April 2020, the government will introduce a new 2% tax on the revenues of search engines, social media platforms and online marketplaces which derive value from UK users.

Policy objective: The application of the current corporate tax rules to businesses operating in the digital economy has led to a misalignment between the place where profits are taxed and the place where value is created.

There's no question this is a bad policy, because any taxes on corporations are a bad idea. But it's what the government says next that really beggars belief:

Impact on individuals, households and families: This measure has no direct impact on individuals as it only affects businesses.

It's this kind of combination of ignorance and slipperiness that politicians really should be held accountable for - because of course this measure is going to have a direct impact on individuals, as it will be individuals who pick up the bill in the form of the higher prices, when the digital companies merely pass on the cost of this tax to their customers. Tut tut!!