Why are European and British companies not enjoying the dynamism that has recently emerged in China and India? Why are UK products being beaten on price? The core explanation advanced here concerns the burden of taxation carried by every firm and their employees. Many taxes are unseen but direct and indirect they double the costs of most transactions. Our excessive taxes blunt, if not quite suppress, the price signals that keep an economy alert and vital.
It is plain that low tax, low regulation jurisdictions succeed better than countries hamstrung by high tax and heavy regulation.
It is no surprise that many EU firms now migrate to happier economic climates, but it has been a surprise that government agencies are now considering such migration.
In this essay Julia Sotnikova goes to the heart of the British economy to synthesis exactly what taxes and regulations surround a typical job. In doing so she provides a road map for reform.