Life is a Circle
New problems – old solutions?
The new PM has his work cut out and some of the options are restricted by Lizzie’s mini-budget, but stay on course he must, let’s hope he remembers the old economist’s messages.
Adam Smith is called the father of economics for his work on The Wealth of Nations, which he published in 1776. Smith’s voluminous text outlines the key aspects of trade and makes a strong case for limiting the intervention of government in trade.
In 1779 William Pulteney identified three criteria: the public needs to accept the social need: have faith that the taxes will be spent prudently: and trust the government of the day.
Over the years a number of clients who have larger wealth have commented regarding taxation generally and the impact of lower tax areas, but at the end of their quest they concluded tax should not be the sole driver of any decision, it is merely a cost of the transaction.
Sometimes it is a conversation one has as an accountant/advisor that puts people’s minds at ease, that paying the right level of tax and not striving too far to use loopholes is a preferred way forward.