Talk about crazy taxes: There’s a tax on incomes that have not even had the chance to be generated.
Sir, I refer to Martin Wolf’s “How Reeves should fix the UK’s tax mess” FT November 5, 2025. It states: “The list of inconsistencies goes on and on. Nobody sensible would have designed such an absurdity”
Indeed! This year I asked ChatGPT: “Would it be completely wrong to opine that higher bank capital requirements against loans to small businesses and entrepreneurs, than against public debt, constitutes a tax on the access to bank credit paid by the first, and used by government bureaucrats?
ChatGPT answered: “Calling this a ‘tax’ on small business credit access is an analogy rather than a literal tax. But in economic terms, it does function similarly to a tax by raising the cost of capital for private-sector borrowers while subsidizing public debt.”
So, Sir, in effect, that so much ignored regulatory distortion “tax” is not even a tax on unearned income but, by often hindering small businesses and entrepreneurs the opportunity of a credit, or making these too expensive for them to earn an income, it is, de facto, a tax on the rebuilding of those fiscal cushions that Martin Wolf so rightly argue are needed.
@PerKurowski
Posts
