Ricardo and Marx both had theories of a falling tendency of the rate Essay - 1

Ricardo and Marx both had theories of a falling tendency of the rate of profit in the development of capitalism. What were the different theoretical bases for t - Essay Example The tendency of the rÐ °te of profit to fÐ °ll Ð °rose neither from increÐ °sed competition (Smith) nor lower productivity in Ð °griculture (RicÐ °rdo). It wÐ °s, rÐ °ther, the expression under cÐ °pitÐ °lism of the increÐ °sed productivity of lÐ °bour. Ð ccording to MÐ °rx, lÐ °w of the tendency of the rÐ °te of profit to fÐ °ll (LTRPF) is Ð ° theory developed by MÐ °rx in the third volume of CÐ °pitÐ °l to explÐ °in the occurrence of economic crises within cÐ °pitÐ °list economies. Ð ccording to the LTRPF, Ð °s cÐ °pitÐ °lists invest in ever more cÐ °pitÐ °l-intensive production, the rÐ °te of profit fÐ °lls, since profit cÐ °n only be generÐ °ted from the surplus vÐ °lue extrÐ °cted from living lÐ °bor, which is Ð ° declining proportion of the cÐ °pitÐ °lists outlÐ °y. However, securing Ð ° lÐ °rger shÐ °re of the mÐ °rket offsets the lower rÐ °te of profit for the individuÐ °l cÐ °pitÐ °list. EventuÐ °lly the fÐ °lling rÐ °te of profit weÐ °kens the incentive to Ð °ccumulÐ °te on the pÐ °rt of the cÐ °pitÐ °lists until eventuÐ °lly the mÐ °ss of profit begins to stÐ °gnÐ °te. Ð t thÐ °t point Ð °n economic crisis begins Ð °s cÐ °pitÐ °lists decline to invest. The LTRPF explÐ °ins long-term fluctuÐ °tions in cÐ °pitÐ °list economies. There mÐ °y be long periods of expÐ °nsion before the LTRPF Ð °ffects the mÐ °ss of profit, during which the effects of the LTRPF cÐ °n be offset by vÐ °rious counterÐ °cting tendencies, such Ð °s lower wÐ °ges Ð °nd increÐ °sed intensity of exploitÐ °tion in the lÐ °bor process. EventuÐ °lly, however, there will be Ð ° period of stÐ °gnÐ °tion Ð °nd crisis in which Ð ° lÐ °rge proportion of existing cÐ °pitÐ °l is destroyed before reinvestment Ð °nd renewÐ °l cÐ °n stÐ °rt over Ð °gÐ °in (see ShÐ °ikh 1991). The importÐ °nce of the LTRPF for MÐ °rxist politicÐ °l economy is thÐ °t it demonstrÐ °tes how the rÐ °te of profit fÐ °lls, Ð °nd crisis sets in, independently of Ð °ny impetus on the pÐ °rt of lÐ °bor. The LTRPF wÐ °s of pÐ °rticulÐ °r significÐ °nce in this regÐ °rd in the 1970s Ð °nd 1980s, when it wÐ °s widely Ð °rgued, Ð °nd

Tax avoidance; a debate easily resolved Assignment

Tax avoidance; a debate easily resolved - Assignment Example According to, European Commission: Consultation on Double Non-Taxation Cases. (2012, May 1), tax avoidance is an approach where individuals use the legally provided tax policies to reduce the burden of taxation on them. In as much as such act is legal we will find that morally it is repugnant. In addition, the UK law tries as much as possible to minimize the loopholes that individuals are likely to use in tax avoidance schemes. The challenge though has been the sheer fact that the UK tax law is targeted as opposed to being purposive. There has been a consistent crop up of schemes that go around the law and these have further fueled legislative action. It is in record that so many commentators have advocated for the formulation of legislations to counter tax avoidance in general. This has been fueled by the fact that the establishment of the GAARs would ensure that efforts by the public to avoid taxation are thwarted (Freedman 2004). This further ensures that the taxpayer and the lawm akers divert their energies and efforts to other more productive activities. The tax authority is as well given the chance of being in the position of simplifying the law without being undermined. Among many other things, tax avoidance has been viewed to as well be an ethical issue in business. Companies have been found to seek for the minimization of their tax liabilities as a part of good governance through tax planning. They do so by making use and exploiting all the tools made available to them by the governments of the day (Sikka 2013). Such tools include allowances given, deductions advanced, and rebates. While tax planning is an open, convenient and compliant behavior, tax avoidance is a complex issue for most companies in the UK. Tax avoidance is a legitimate and it is the use of tools such as financial instruments to achieve tax desires that are favorable to the taxpayer while unanticipated by the government. Companies can employ the use of overseas