Tax and morality? The two should never meet…

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The language, or rather political language de jour, is for the canvassing potential members of the next parliament (Parliamentary candidates in the UK) to merge two very different concepts into one, in the public’s mind. Those words are tax evasion and tax avoidance. We (at the theMarketSoul) believe we potentially know why, but the consequences might not yet be clearly understood.

Economic principle of creative destruction - joseph schumpeter
My PRECIOUS…!

At a recent televised debate attended by potential next Business Secretary representatives (politicians who would be in charge of the Business, Innovation and Skills [BIS] department) from the three major political parties, one of the candidates challenged the audience thus:

“You (tax advisers) know the difference between aggressive tax avoidance on the the one hand and tax planning on the other.”  No the question was actually this: “Please raise your hand in the audience if you do not know what aggressive tax avoidance is.” From the podium the verdict came that about half the audience raised their hands. And therein lies the problem: Are you making this a moral question now? Because until someone is able to clearly define and explain how morality and tax planning are linked; we at theMarketSoul cannot help but think:  Where next in this one sided ‘supposed’ quasi debate?

It really depends on how you ask the question:

Is taxation moral? Is paying tax moral? What level of taxation is moral? Is being moral, paying your taxes?  If you don’t pay taxes, are you immoral?

Hopefully, you get our drift…?

© theMarketSoul 2015 skelet

Our Lessons from 2011

 

We decided to summarise our learning from 2011 into two brief thoughts:

 

The May 1, 2010 cover of the Economist newspap...
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  1. The pains and strains of the economic sovereign debt melt-down in 2011, should stand us in good stead to deal with even more debt and sovereign strain in 2012, as More and Bigger Europe continue to miss the point; this being that more bureaucracy and more government and regulation will not get the INNOVATION engine started again to Recapitalise Europe!

    Graphic "When Greece falls" presente...
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  2. Translational differences will matter.  The CLOUD is a huge business and business model transformation opportunity.  IT ‘Geekery’ and language could scupper this potential opportunity and we need to develop more ‘CLOUD TRANSLATION’ services so that a broader community and eco-system can get involved in an aspect of “INNOVATION ignition” in 2012.
Clouds over Tahoe HDR #1
Image by Bill Strong via Flickr

All the best and good luck in 2012.

 

theMarketSoul ©2011

…and here is some good news…

 

Adding further value to our conversation on The Market eQuation we introduce the concept of the:

RISKed RETURN on MARKET (RdROM) today on 11.11.11.

RISKed RETURN on MARKET adds a counter balance to the Efficient Market Hypothesis and Rational Market Theory, Black Scholes and CAPM, amongst others.

More detail to follow in due course…

theMarketSoul ©2011

Do we value everything and understand nothing?

On reflection, the ‘mechanism’ established to rescue or save the Euro is indicative of the fact that we still understand very little and can control and short-circuit systems to some extent, yet we think we value everything.

Inflation, and dare we state it openly, serious inflation of double-digit proportions must now surely be back on the cards?

We realise that we are not the only and first publication to come up with this analysis.

Bloomberg reported on 30 September 2011 that European Inflation had unexpectedly jumped to 3%, up from 2.5% in August.  Yet, this is still a long way off a double digit scenario, however, the factors mentioned in the Bloomberg report included, the Greek Default (possibility) and the ECB actions still possible in terms of containing European wide inflation.

Although most economists predict that inflation will start to wane next year, we believe that actions like the Greek Debt haircut and the increase in the EFSF’s bailout fund to €1tr sends signals to the market that the value of money is now seriously ‘delinked’ from operational reality.

We will not comment here in depth on monetary policy, as it is currently applied, however, we are beginning to get the impression that inflation as ‘the silent and stealth’ taxation it really is, is now firmly (yet behind closed committee room doors) on the agenda to help “manage” the size of the European Debt mountain.

It is worth keeping an eye on the real drivers of inflation and then there is some value in keeping an open mind.

theMarketSoul ©2011

Random Collisions of Chance

Chance and spontaneity are two interesting phenomenon required for innovation and creativity.

We were reminded of this in an interview recorded of a LinkedIn executive recently*.  He stated that chance encounters are “where we make some of our most significant connections“, be it your life partner, business associates, etc. and that speeding up those chance encounters was one of the fundamental principles and aims of social networking.

That idea struck a chord with us.  Like our free market principle of ‘Spontaneous Order’, random collisions and network creation, leading to opportunity exploitation and ultimately wealth and welfare maximisation is intuitively an attractive proposition.

The Free Market: A False Idol After All?

So, we have the mechanisms in place, with online tools and social networking sites, but how much of this activity is outward focussed revenue and income generating?  What is meant by this is that the revenues are not focussed on increasing advertising and network operator revenues, but individual participant to participant’s opportunity flows.

And beyond building an online presence with followers and individuals being influencers and thought or trend leaders in their domains, how many of us focus on being revenue leaders and wealth and welfare ‘maximisers’ in this space?

Do you have personal metrics of success, which help inform and modify and moderate your personal behaviours to ensure that you maximise your ‘Return on Ether-time’? [ROET]

Maybe it is well worth a thought because in the neo-classical world of market participation, if you aren’t in the market and making a living (or a half descent living) from it, you might get marginalised and lose out on the wave that hit us when Web 2.0 arrived.

English: A tag cloud (a typical Web 2.0 phenom...

theMarketSoul ©2010

* We are searching for a link / reference to this interview.  Once we have found it, we will update this post