Reply to: George promises to cut Corp. Tax rates.

[Fred Bloggs]

So, are you advocating a 0% tax rate on all taxes, because that would be good for the economy?

I would shift all taxes away from income/investment returns and onto consumption. The more you spend, the more tax you'd pay, simples.

[pmeswani]

Higher VAT rate. Cut the tax on the rich, and then tax those that can least afford it. Sensible policies for a happier Britain.

Higher VAT, sadly, is going to happen regardless of which Government comes in. That is thanks to the stupidity of the current administration.

As a country, we are screwed to the mountains when it comes to taxes.

[contractor79]

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

agreed, Tories won't get in

[AtW]

Don't be G. Osborne

[TheFaQQer]

IMHO

[AtW]

Corp Tax is way too high - there is Ireland next door with English speaking population, nearly same location and Corp Tax there is 12.5%. That's why Google (UK) appears to channel profits through their subsidiary there and pays pitiful corp tax figure in the UK.

IMHO Corp Tax should not be more than 20% for large companies and 15% for small. When profits are depressed it is pointless to increase Corp Tax anyway.

Cons will win and they'd do a good thing with this move.

[malvolio]

Not that stupid an idea. That would encourage the people that generate wealth.

Seriously, VAT will go up, or personal income tax will go up, probably not both. ANd the advantage of upping VAT is that VAT is mostly a tax on discretionary purchases anyway, which makes it the better option.

[TheFaQQer]

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.

Higher VAT rate. Cut the tax on the rich, and then tax those that can least afford it. Sensible policies for a happier Britain.

[TheFaQQer]

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.

So, are you advocating a 0% tax rate on all taxes, because that would be good for the economy?

[Fred Bloggs]

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.

[centurian]

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.

[d000hg]

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

[downsouth]

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

[HairyArsedBloke]

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.

[Fred Bloggs]

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.