George promises to cut Corp. Tax rates.

**centurian** · 28 February 2010, 13:24

The way things are going, he might as well promise a cherry on top as well, because it ain't gonna happen...

**TheFaQQer** · 28 February 2010, 14:31

Cutting tax revenue - that will help balance the budget.

**pmeswani** · 28 February 2010, 15:10

Originally posted by TheFaQQer View Post

Cutting tax revenue - that will help balance the budget.

It may not balance the books on the surface, but it will allow business to be more Enterprising. I'm going to guess that the Conservatives are going to tax enterprises via other means, such as higher NI and / or Income Tax or even introduce Business Rates for those who currently don't pay it.

Pure speculation though.

**Fred Bloggs** · 28 February 2010, 15:12

It is long understood that lowering tax rates actually increases revenue because it stimulates economic activity. This is a fact of economics and would be an excellent way to help the economy recover IMO.

**HairyArsedBloke** · 28 February 2010, 15:15

Originally posted by pmeswani View Post

It may not balance the books on the surface, but it will allow business to be more Enterprising. I'm going to guess that the Conservatives are going to tax enterprises via other means, such as higher NI and / or Income Tax or even introduce Business Rates for those who currently don't pay it.

Pure speculation though.

Academic too as the Conservatives are not going to be able to put these plans into action. Their chance of forming a government has passed them by.

**downsouth** · 28 February 2010, 15:28

opposition will promise the earth as an attempt to get into power, however like everytime none of the 'promises' will be delivered on.

Bet they dont 'promise' to raise taxes, but you can be sure they will

**d000hg** · 28 February 2010, 16:01

Originally posted by Fred Bloggs View Post

It is long understood that lowering tax rates actually increases revenue because it stimulates economic activity. This is a fact of economics and would be an excellent way to help the economy recover IMO.

Didn't/doesn't Ireland have very low tax rates, and get hammered far more in the house price crash/recession than the UK?

Also, 20% is hardly going to make a big difference to now. You're not going to be taking more holidays or buying a new car on that alone

**centurian** · 28 February 2010, 17:39

Originally posted by d000hg View Post

Didn't/doesn't Ireland have very low tax rates, and get hammered far more in the house price crash/recession than the UK?

Yes, but that was to get foreign companies in - and it worked very successfully - got to hand it to them.

Where it went horribly wrong was that they assumed the money coming in would be there every year, year on year - that it was a permanent feature of their economy that they had created. So promptly spent the money building up their house prices and public sector.

Of course the problem with bribing foreign companies to come in - is that they will have utterly no scrupples about being bribed to leave by another country. This left a gaping hole in their budget because they treated a temporary influx of investment as a permanent facet.

**Fred Bloggs** · 28 February 2010, 17:57

Originally posted by HairyArsedBloke View Post

Academic too as the Conservatives are not going to be able to put these plans into action. Their chance of forming a government has passed them by.

I believe you're right.

George promises to cut Corp. Tax rates.