cleggeron corporate tax cuts

ninky_2

http://www.telegraph.co.uk/finance/businesslatestnews/7737913/George-Osborne-set-to-cut-headline-corporation-tax.html

it seems 'fiscal stimulus' is okay for some but not for others.

don't forget though...we're all in this together.

Pennywise

We NEED competitive corporation tax rates to encourage businesses to stay in/come to Britain.

Why do you think Google, Ebay, Paypal etc aren't based in the UK - it's because corporation tax is less in other countries. That's a lot of jobs, construction of offices, services used, goods bought, etc in Ireland, Switzerland, etc that could have been brought to the UK

We're in an international market place now and multi-national companies can and will choose where they locate their head office for best advantage and tax rates are a major part of the decision making process.

1984ReturnsForReal_2

Pennywise wrote: »

We NEED competitive corporation tax rates to encourage businesses to stay in/come to Britain.

Why do you think Google, Ebay, Paypal etc aren't based in the UK - it's because corporation tax is less in other countries. That's a lot of jobs, construction of offices, services used, goods bought, etc in Ireland, Switzerland, etc that could have been brought to the UK

We're in an international market place now and multi-national companies can and will choose where they locate their head office for best advantage and tax rates are a major part of the decision making process.

Precisely.

That is why we need no inheritance tax until £1,000,000, the abolishment of the employers NI increase & the reduction of the 50% tax band.....

marklv

Pennywise wrote: »

We NEED competitive corporation tax rates to encourage businesses to stay in/come to Britain.

Why do you think Google, Ebay, Paypal etc aren't based in the UK - it's because corporation tax is less in other countries. That's a lot of jobs, construction of offices, services used, goods bought, etc in Ireland, Switzerland, etc that could have been brought to the UK

We're in an international market place now and multi-national companies can and will choose where they locate their head office for best advantage and tax rates are a major part of the decision making process.

But we also need to raise tax in order to pay for the country's needs. Google, eBay and Paypal are not in the UK for the simple reason that they are American companies and don't need a big presence here, as yet, for strategic reasons. Anwyay, eBay does have an office in London, and Amazon UK is based in Berkshire. There already a lot of overseas companies with a big presence in Britain; mostly in the financial sector, but also IT etc. Tax is not the only reason why companies move; in any case the biggest companies need a presence pretty much everywhere where they do business, regardless of the tax regime.

marklv

1984ReturnsForReal wrote: »

Precisely.

That is why we need no inheritance tax until £1,000,000, the abolishment of the employers NI increase & the reduction of the 50% tax band.....

No, we don't need these. Although inheritance tax should still go up by a bit in my view, as the threshold has not kept pace with the increase in personal wealth in the last few decades. As for the 50% threshold, I actually believe it should be brought down to the £100k a year level.

1984ReturnsForReal_2

marklv wrote: »

No, we don't need these. Although inheritance tax should still go up by a bit in my view, as the threshold has not kept pace with the increase in personal wealth in the last few decades. As for the 50% threshold, I actually believe it should be brought down to the £100k a year level.

Sorry. did I forget the wink on my earlier post?

Kohoutek

ninky wrote: »

don't forget though...we're all in this together.

Maybe they got the idea of cutting corporation tax from the previous government?

http://www.telegraph.co.uk/finance/financetopics/budget/5195341/Budget-2009-The-10-most-significant-tax-changes-under-Labour.html

The 10 most significant tax changes under Labour:

No. 2: Corporation tax cut by 5 percentage points from 33% to 28%

ninky_2

Kohoutek wrote: »

Maybe they got the idea of cutting corporation tax from the previous government?

http://www.telegraph.co.uk/finance/financetopics/budget/5195341/Budget-2009-The-10-most-significant-tax-changes-under-Labour.html

it's quite different if you bring in a corporation tax cut whilst also bringing in a minimum wage and raising it on a regular basis. however, if you bring in corporation tax cuts whilst scrapping the NI increase for employers, raising them for employees and also cutting public services that sort of looks like you are protecting the wealthy whilst failing to protect the less well off.

JasonLVC

marklv wrote: »

But we also need to raise tax in order to pay for the country's needs. Google, eBay and Paypal are not in the UK for the simple reason that they are American companies and don't need a big presence here, as yet, for strategic reasons. Anwyay, eBay does have an office in London, and Amazon UK is based in Berkshire. There already a lot of overseas companies with a big presence in Britain; mostly in the financial sector, but also IT etc. Tax is not the only reason why companies move; in any case the biggest companies need a presence pretty much everywhere where they do business, regardless of the tax regime.

They may have offices in the UK but they are not based in the UK for corporation tax purposes Marklv and so don't pay any taxes to the UK Treasury on any profits they make globally.

Tesco's for instance is notorious for dodging taxes :-
http://www.supermarket.co.uk/news/2008/Feb/Tesco-Accused-Of-Tax-Evasion.html and yet there's thousands of Tesco's stores up and down the country, many of which aren't 'owned' in the UK. Bizarre!.

Corporate tax rates are important in attracting not only the physical presence of a business which will employ local people, it also needs to be legally based in the country so that it can pay taxes....but when Ireland's CT rate is 12.5% of profit and the UK's is 28% where would you rather be 'based' and pay tax?.......

The UK has lost many a big industry over the last few years - LCD plants in Wales/Scotland, the big pharmaceutical firms (another 700 this month alone due to restructuring - another word for moving out of the UK) and with the desperate need to generate income, the government has to stem the flow somehow.

Kohoutek

ninky wrote: »

it's quite different if you bring in a corporation tax cut whilst also bringing in a minimum wage and raising it on a regular basis. however, if you bring in corporation tax cuts whilst scrapping the NI increase for employers, raising them for employees and also cutting public services that sort of looks like you are protecting the wealthy whilst failing to protect the less well off.

You're assuming that the sole motivation for cuts in business tax is to help the wealthy. That's silly and obviously not the case. They are abolishing employer's NI on the first ten workers too - is that to help the wealthy or encourage job creation?

If they really wanted to help the wealthy, they wouldn't be raising CGT, keeping the 50p income tax rate, keeping the 5% stamp duty on properties over £1m, and scrapping the inheritance tax cut.

They're no evidence yet that they are planning to raise the minimum wage any less than Labour, and you conveniently forgot the incremental steps to a £10,000 personal allowance. Labour abolished their own 10p tax band for the poor in the same budget they cut corporation tax and cut CGT.

JasonLVC

ninky wrote: »

it's quite different if you bring in a corporation tax cut whilst also bringing in a minimum wage and raising it on a regular basis. however, if you bring in corporation tax cuts whilst scrapping the NI increase for employers, raising them for employees and also cutting public services that sort of looks like you are protecting the wealthy whilst failing to protect the less well off.

You have to ask "What do I want to achieve?" as a government.

Businesses are closing down left and right so no CT tax at all. The richer firms are moving on out, so no CT at all. It's all very well increasing NI on the employee - but that only works if they have a job and with 2.5m unemployed and a further (alleged) 8m "economically inactive", there's a big burden on a smaller group of individuals (those with jobs) to pay more taxes but to get those taxes in, you need to first protect the jobs themselves or else it all falls down.

On saying that, the lowering of CT should be matched with simplification of the CT rules and the stopping of all this off-shore tax planning. Big business needs to accept that if they want to sell to a society, they need to pay their taxes like everyone else.