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
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!!
