At G.S.K, we believe that prevention is the best medicine. Prevention is pioneering new medicines to reduce

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disease together. Visit gSK.com to learn more. This is a CBSI on the world. I'm John Bachelor with Professor Richard Epstein and after the G7 meeting in Cornwall, the discussion turns to the tax regime recommended by the United States

and embraced by the G7 partners in order to make for a recovery that is as Ms Jellen says

strong balance and inclusive. Now we come to what appeared to me at first reading to be the easy part. The 100 largest

corporations will have taxes visited upon them on the basis of their profits so that therefore

they can't move money around or in some way avoid their obligations.

However, Richard, in your defining ideas piece, Richard is going to help me with understanding this language here.

You say, now, when it comes to being one of the 100,

what we're doing in fact is penalizing them for being successful and rewarding the less successful did I read you correctly

Yes, you do I mean if you were to say about the hundred largest company that they had engaged in some unfair practice and

sue them for monopolization or some other kind of wrong.

But nobody's alleging that.

And so what happens is you take a company like Amazon or Apple.

I don't always agree with their political statements,

but they're absolutely profit machines because they give customers and consumers

what they want.

If in fact you decide to tax them at an unduly high rate, it means an effect

that you're going to shift from efficient companies that supply people what they want,

the inefficient companies that do both things less well than the other one.

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