From City AM:
British businesses do not want further corporation tax cuts for fear of alienating the general public.
The consensus opinion across the UK's companies is that corporation tax is not a "defining feature of tax policy". This means that the benefits of a cut are outweighed by negative publicity attached to business’ role in the tax system, according to a study prepared by accountants PwC...
"There comes a point when rate cuts have diminishing impact and can send unhelpful messages about business' contribution, even though corporation tax is just one of the taxes business bears. Businesses think there should be more focus on the taxes that generate the most revenue such as national insurance and VAT," said Nicholson.
Monday, 7 November 2016
Outbreak of commonsense in the tax world...
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11 comments:
What next; the Treasury admitting national insurance is a tax?
B, that'll never happen.
Why would businesses care about taxes on consumption or their employees? Not their problem.
Sorry- I don't mean to be the troll of the blog! I'm very pleased that there are so many seeming outbreaks of common sense in these matters- and I wonder if this blog has had any small contribution in that...
TBH, LOLS and no, it probably didn't. I do this for sport.
"Why would businesses care about taxes on consumption or their employees? Not their problem."
It is their problem, because they are the ones that pay the VAT. Buyers don't have one budget for buying stuff and another for paying VAT, so whether VAT is being charged or not, the price remains the same - what the buyer is prepared to pay. So a reduction of VAT is an increase in their profits.
B - 'an increase in their profit's, until competition kicks in. And then they'll sell more widgets at the lower price anyway, so more profits. Whatever way you look at it VAT is a very stupid idea, and guess who's favourite tax it is? The EU. Obviously.
B, TBH was being ironic!
L, exactly and agreed.
How much is really left of the £110 headline figure for VAT receipts after all the costs, losses and churning are taken into consideration?
P, but the costs, losses and churning are nearly all borne by the taxpayer, not the tax collector.
@Bayard
My ball park figures are
Compliance and administration £5 billion
Churning £23 billion
Downstream @ 10% £33 billion
Deadweight @ £25 billion
Consequential additional welfare costs @ £6 billion.
This indicates a total loss of £69 billion ie two-thirds of the revenue is swallowed up in costs and losses.
Is this hopelessly out?
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