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For those of you highly skeptical of my prediction that the internet will cause the nation state as we know it to be unable to tax fairly incomes or transactions in goods and services and so cease to exist in its current form , here's a slightly different angle on it at Reason...

It seems to have finally dawned on the US government that whatever laws and regulations they pass, they will not be able to ban offshore internet gambling:

In other news this week about the internet and real life colliding, we also had Second Life being cited in a divorce case in the UK and a Japanese woman sued for murdering her husband's online persona.

Which are you going to be - more restrictions, ultimately futile; or building new mutual institutions to help deliver public goods in an era of a reduced ability to collect tax?

Apparently genes get names. I thought they were all numbers or something. And apparently some of them are now a bit, well, politically incorrect. I can understand - if you named one the "lunatic fringe gene" when you discovered it made a fruit fly twitch and now you find the same gene in a human and it controls, I dunno, whether one has a propensity to developing diabetes or something it could get a bit confusing discussing the cause of their diabetes in terms like "you have a problem with your lunatic fringe gene". So...

Rebranding exercise for offensive genes:

The Human Genetics Organisation, which oversees gene naming, is conducting an urgent consultation with scientists to find inoffensive alternative names to genes with titles such as "lunatic fringe" and "one-eyed pinhead".

I wonder if there's a "wing-nut" gene?

...well, perhaps not quite but this is interesting, if blindingly obvious in a sort of a "why didn't we think of that" way:

I've been writing for a while now about how the globalization of communication (and delivery) technology is set to make it ever harder for states to quantify and collect taxes based on trade and incomes and make it imperative, if they want to have any revenue stream into the future, to switch taxation to more fixed sources like ("economic") land - ground rents, airspace, electromagnetic spectrum and so on, or face the prospect of ever increasingly authoritarian measures to force people to repatriate income and assets for tax purposes.

I hadn't counted on VAT being amongst the first to be threatened, but here it is. It's not going to help buying cakes from Tesco yet because it will only work if it is actually imported, I suspect (no getting away with simply operating from a warehouse in every town that happens to be owned by a Channel Island company I would think).

But people, liberal minded political types especially, need to wake up to this double threat - to recognize that revenue collection will be more difficult in future if based on moveable assets, incomes and trade, and to recognize that addressing that means going one of two ways - the more equitable land tax, or the more authoritarian crackdown on trade and "cross-border" earnings.  The ability to move money and income and so on overseas is moving fast and getting ever easier for the ordinary person - you no longer need to be super-rich to go offshore.  We need to act fast to counteract its effects on future tax revenues.

Tucked away in the comments to Lib Dem Voice's How rich are you? article comes this snippet from Tim Leunig (LSE economist, and member of the Housing Policy working party I was on a couple of years back):

"The obvious new incentive effect is on house prices. We would expect them to increase (by around 8x the level of council tax, so around £15k), as happened when rates were replaced by the poll tax."

Well quite. We in ALTER have been saying this since the Local Income Tax policy was first debated. We've gotten the impression that the rest of the party has not been listening. Hopefully someone as respected as Tim within the party will make someone listen with comments like that.

To reiterate...not only will most of your national income tax reduction be eaten up with your new Local Income Tax but if you happen to be in that growing group who are getting no help with housing costs and cannot afford to buy a home, you'll be likely to find prices even further out of your pocket by at least another half an income multiple.

Perhaps this is why the Lib Dem Youth and Students annual conference this year voted against Local Income Tax and in favour of Land Value Tax instead. That cohort is what we usually regard as our "core vote" I believe. Not the people you'd want to piss off I'd have thought.

"Axe the Tax" was, and remains, a great idea - Council Tax is as regressive and unfair as taxes come. Local Income Tax was an easier thing to sell, perhaps, than another type of property tax. But, as Keynes was it said "when the facts change, I change my mind, what do you do sir?" it is time, three years on with property prices up another third, to think again about a tax policy that will extend the misery of those we want to help. There's no shame in changing policies if a better idea presents itself. Affordable housing is, as Gordon Brown said this week, right at the top of the agenda now - we should not continue with a tax policy, in the form of Local Income Tax, GUARANTEED to exacerbate the affordability crisis all parties appear to want to solve.

Technorati Tags: axe the tax, council tax, land value tax, ldys, lib dems, local income tax

The Observer reports that Lib Dems' leader to visit Guantanamo:

Ned Temko, chief political correspondent
Sunday June 11, 2006

Sir Menzies Campbell plans to become the first British politician to visit Guantanamo Bay.

Nice one!...

...or maybe he's hoping to get a bit of work.

Technorati Tags: lib dems