the snap general election thread

cogito

Fella wrote: »

Interesting & very predictable that both Labour & the Libdems are saying their manifestos are "fully costed" which turns out to mean they'd fund their spending with Corporation tax rises.

This is simple lies. Everybody knows two things about Corp tax:

1. It's impossible to predict with any accuracy what effect changes to it will have.

2. There is absolutely no agreement on what effect changes on it will have. Or indeed what effect changes on it have had!

So basically the Labour & Libs have not costed any of their spending plans, they've just come up with some populist ideas & are proposing tax changes that are at least as likely to reduce tax take as to raise it, but hoping they'll go down well because they involve bashing those nasty corporations that er....half the country depends on for a job.

As I understand it, when corporation tax rates were reduced, the tax take went up. Classic Laffer Curve effect. The logical result of increasing the tax rate would seem to be less money to pay for things like more policemen. I'm not actually sure what Labour and the Libs are going to spend it on though. They seem to be adding new things every day that increased corp tax rates are going to pay for. All fully costed, of course.

[Deleted User]

westernpromise wrote: »

As long as people they envy and hate are worse off, they're happy.

If you had two countries, in one of which everybody had £100 apart from 10% who had £200, and in the other everyone had £50, a lefty will always try to turn the former into the latter.

If Labour decide to take an additional, what, 5-7% from company profits which would they prefer happens? I think some of the more likely outcomes are -

1. Companies will pay their staff less money, or will not increase wages by as much as they would have done without the tax rises.

2. Companies will pay less in dividends, as after tax profits will be lower, resulting in lower funds going to private investors, those with shares ISAs, and of course, pension funds.

3. Companies with the choice of where to focus their investment decisions will seriously consider making investment elsewhere, or moving to lower tax states altogether, such as the Republic of Ireland where the Corporation Tax level is, I think 12%.

I'm not saying that I agree or disagree with the areas in which Labour propose to spend the money. I'm interested in folks views on what the economic outcome of a more than 33% increase in a tax will have on the tax product.

I can understand that, politically, Labour delight in being seen to bash companies, but I'm not convinced their plan will actually raise the money they want. Whatever a company earns, it adds up to 100% of what they have. At the moment, only 19% is set to go in Corporation Tax. If Labour has its way, that company will spend up to 26% on Corporation Tax ...... what will that extra 7% be cut from?

WR

ThinkingOutLoud_2

And of course if they renationalise things as it their want ... there will be less companies to tax!
All costed?

antrobus

Fella wrote: »

Interesting & very predictable that both Labour & the Libdems are saying their manifestos are "fully costed" which turns out to mean they'd fund their spending with Corporation tax rises....

It's all based on the principle of, don't worry, somebody else will pay.:)

If only we'd realised earlier that companies were a source of consequence free tax revenues. We could have wacked the rate up to a 100% and solved the problem of the deficit without any of this austerity malarkey.

wotsthat

What Labour and/ or the Lib Dems say in their manifestos is irrelevant.

Hardly anybody reads them and the chance of them being enacted is on a par with a cat in hell.

I'm still waiting for the Conservative manifesto which appears to be AWOL although I'm glad important matters are being covered by the media - such as whether it's Mr or Mrs May that puts the bins out.

setmefree2

antrobus wrote: »

We could have wacked the rate up to a 100% and solved the problem of the deficit without any of this austerity malarkey.

I think that's called communism......

ThinkingOutLoud_2

wotsthat wrote: »

although I'm glad important matters are being covered by the media - such as whether it's Mr or Mrs May that puts the bins out.

If you are looking to the One Show to lighten your political vacuum...

That said at least she appeared on TV and you did learn something concrete about Brexit - May confirmed it will not mean the UK has to pull out of Eurovision in the future.

Next up on the Brexit agenda - if we can still bake and sell baguettes & croissants without tariffs.

Filo25

Wild_Rover wrote: »

If Labour decide to take an additional, what, 5-7% from company profits which would they prefer happens? I think some of the more likely outcomes are -

1. Companies will pay their staff less money, or will not increase wages by as much as they would have done without the tax rises.

2. Companies will pay less in dividends, as after tax profits will be lower, resulting in lower funds going to private investors, those with shares ISAs, and of course, pension funds.

3. Companies with the choice of where to focus their investment decisions will seriously consider making investment elsewhere, or moving to lower tax states altogether, such as the Republic of Ireland where the Corporation Tax level is, I think 12%.

I'm not saying that I agree or disagree with the areas in which Labour propose to spend the money. I'm interested in folks views on what the economic outcome of a more than 33% increase in a tax will have on the tax product.

I can understand that, politically, Labour delight in being seen to bash companies, but I'm not convinced their plan will actually raise the money they want. Whatever a company earns, it adds up to 100% of what they have. At the moment, only 19% is set to go in Corporation Tax. If Labour has its way, that company will spend up to 26% on Corporation Tax ...... what will that extra 7% be cut from?

WR

Multinationals will perfectly legally use Transfer pricing arrangements to declare lower profits in the UK and coincidentally higher profits in lower tax jurisdictions, meaning that domestic companies will face an uphill struggle to compete with them given that their ability to avoid higher rates of tax is considerably lower

Filo25

Westminster voting intention:

CON 48% (+1)
LAB 31% (+1)
LDEM 8% (-2)
UKIP 5% (-)
GRN 2% (-)

(via @PanelbaseMD / 05 - 09 May)

London Westminster voting intention:

LAB: 41% (+4)
CON: 36% (+2)
LDEM: 14% (-)
UKIP: 6% (-3)
GRN 3 (-2)

(via @YouGov / 27 Apr - 02 May

westernpromise

Given that UKIP seems to lack the wherewithal to contest all 650 seats it must be very unlikely that they will achieve their nationally-predicted poll share. There will be UKIP supporters turning up to vote and finding no UKIP candidate on the slip.