Japan's perverse message; just tax the corporate cash mountains even more – Telegraph Blogs
The Government's preferred approach is to reduce business taxation in the hope this might provide the incentive for business to invest, but instead the money just seems to get saved. In a classic liquidity trap, supply side reform such as cutting business taxation is ineffective. Alternative investment incentives have to be found. Taxing the surplus may be one of them.
Should the government tax the corporate tax mountains?
The Government's preferred approach is to reduce business taxation in the hope this might provide the incentive for business to invest, but instead the money just seems to get saved. In a classic liquidity trap, supply side reform such as cutting business taxation is ineffective. Alternative investment incentives have to be found. Taxing the surplus may be one of them.
Should the government tax the corporate tax mountains?
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