Manipulating currencies, over-regulation and falling tax yield are a recipe for concern in the year ahead, particularly as the European Central Bank releases a round of quantitative easing, warns Emile Woolf FCA
The world of economics and business is riddled with anomalies. For example, the UK is enjoying buoyant GDP growth and low unemployment, yet the excess of government spending over income (the ‘deficit’) continues to grow. Despite so-called ‘cuts’, 46% of GDP still goes on public expenditure, of which 60% doggedly adheres to welfare, health and education.
Taxation is another conundrum. With higher corporate profits and lower unemployment, the yield from taxes, duties and VAT should rise, with correspondingly less needed for welfare. Yet the reverse is happening. Who is doing the sums?
Becoming a low-tax regime is the aim of every EU member wishing to attract foreign business. Yet those who succeed, such as Ireland and Luxembourg, are routinely castigated by the others.
