Tuesday, 26 June 2007
Wednesday, 20 June 2007
- PE Houses make money, in general, by buying groups and selling them between 2 and 5 years later. They look to get a higher price than they initially paid, generally by more innovative financing but superincentivising management and staff. The "Slash and Burn" story is something of a myth, they only slash what needs it, there's no logic in destroying value in something you want to sell to an educated buyer
- Most PE money comes from the US, and often tax exempts. So most of the gains aren't even taxed in the UK
- The debt financing for PE funds is already subject to anti-avoidance legislation to prevent overgearing
- The underlying investments on which the gains arise have already been subject to corporation tax anyway
- Tax the VC managers too much and they will respond with 1 of 2 answers - either they move offshore, or they don't invest in the UK in the first place
- Many staff and ordinary workers in successful PE deals have got large bonuses / rewards on such exits. Many management who did superwell, and certainly the ones the TaxCutter has met worked 24/7 . Why tax success just because someone had the innovation and bottle most of us lack. Lets face it, business is only successful when it gives the consumer, something the consumer wants
- Too many big groups are over-bureaucratic and political. PE owned groups tend to be smaller and more business and customer focussed
Just remind me - who invented the 10% Business Asset Taper Relief rate? And who removed the tax credit on dividends so PE investment gives a higher post-tax return than investing in bog standard UK plcs? Lets see ... all these changes happened since 1997 .......
But as the "Private Equity funds taxed less than cleaners" quote says - shouldn't the real questions be why are low paid workers now caught up in Labour's income tax net - and what logic is there for taxing capital gains in the first place?
Tuesday, 19 June 2007
Thursday, 7 June 2007
Monday, 4 June 2007
Sunday, 3 June 2007
The Grammargate debate has shown not just the benefits of the establishments such as those The TaxCutter was educated in. Its shown that Dave hasn't got a hope in hell of winning a General Election.
Nevermind the odd + or - when it comes to how boundaries are drawn up. Dave has shown an uncanny knack of picking the wrong fight with the wrong people.
So lets assess Project Cameron.
Policy decisions, he hasn't made any. Nevermind the Tax Reform Commission, one of the biggest, and best policy papers, produced anywhere by an Opposition party - some have suggested that Dave hasn't got the guts to endorse it. That may only be a part truth. The guy stumped on Budget Day simply doesn't get economic policy, how often has Dave talked. Point 1 for Dave - the electorate want a government, not an opposition, Policies don't become votewinners overnight or even overyear
Party morale, get screwed. Dave, as you never appear to have met the party faithful, let me just remind you that we don't do celebrity, and we definitely don't do Greg Dyke and Polly Toynbee. Remind me again what happened to the A list. Point 2 - the Country wants someone to sort out the crisis in the Public Sector, not the next Liz Hurley
An effective HQ? Are the best agents being taken out of safe seats and put in key marginals, its not reached the TaxCutter's ears? Andy Coulson may have been sacked by News of the World, but one page of political comment stuck, probably untouched by Coulson, buried behind the latest Sven/BB/Beckham story does not make the Editor the next Karl Rove. Point 3 - nevermind they didn't go to Eton, put the best people in the best jobs. There's some very good right wing minds out there, e.g. Haldenby, Lea, Heath, so use them
Dave's record on putting the right people in the right job. The only truly effective performer is David Davis, the main person that the Cameroons wanted to get rid of. And Dave himself has made precious little ground on Labour in fundamental areas, like Health, Education and the Economy. The green stuff is ok, but there needs to be more evidence of concentrating on the things that really bother good governments. Point 4 - Schools and hospitals will win more votes than bikes and windmills
Its been a poor 18 months. A few glib speeches aside, The Cameroons have not built a long-term base to rival the still very effective political machine that is The Labour Party. Rightwingers win elections, not by being liked, but by being respected and being consistent and predictable on the key issues, not banging on about chocolate oranges and trips to Lapland. What scares me most is that I am not seeing any sign of improvement, paraphrasing Sir Alan Sugar a few weeks ago, its not that Dave is too young, I just don't think he is any good. Its about time he heard the phrase "You're fired" but who dares loads the gun?