The damage of taxation

[V8mate]

In this country we have reasonably competitive rates of both personal and corporation tax (in most instances/for most people/yadayada)

So, ignoring the revenue either delivers, i.e. from a purely academic perspective, if you could make either of these taxes zero, which would you change?

The existence of which, do you feel, most damages the economy?

[TheEnd]

I was going to say personal taxes, but I'd guess that wages would drop to suit (ie, why pay people the same when last year they were happy enough with 20%+ missing from their wage packets).

[RacerMDR]

Corporation Tax - I hate it! It should be certainly dropped on anything below 1million - as it stifles small business!

[davepoth]

Corporation tax would probably help more - a 0% rate would attract an awful lot of businesses.

[Ozzie Osmond]

RacerMDR said:

Corporation Tax - I hate it! It should be certainly dropped on anything below 1million - as it stifles small business!

How on earth does a 20% tax on profits stifle anything?!

[turbobloke]

Ozzie Osmond said:

RacerMDR said:

Corporation Tax - I hate it! It should be certainly dropped on anything below 1million - as it stifles small business!

How on earth does a 20% tax on profits stifle anything?!

Prior to the Callaghan/Wilson budget of the mid-60s it didn't stifle anything, it didn't exist. Since then it's been stifling small business growth and job creation quite well.

[RacerMDR]

turbobloke said:

Ozzie Osmond said:

RacerMDR said:

Corporation Tax - I hate it! It should be certainly dropped on anything below 1million - as it stifles small business!

How on earth does a 20% tax on profits stifle anything?!

Prior to the Callaghan/Wilson budget of the mid-60s it didn't stifle anything, it didn't exist. Since then it's been stifling small business growth and job creation quite well.

yeah I agree - its 20% tax on success - especially in small business.

[AJS-]

Personal tax for me.

The basis of so much wrong is the government knowing all our financial affairs, and the incentive to become a sole trader rather than a limited company would encourage more sole traders, small businesses and risk taking rather than corporations which tend to become cumbersome bureaucracies themselves.

[Ozzie Osmond]

turbobloke said:

Ozzie Osmond said:

RacerMDR said:

Corporation Tax - I hate it! It should be certainly dropped on anything below 1million - as it stifles small business!

How on earth does a 20% tax on profits stifle anything?!

Prior to the Callaghan/Wilson budget of the mid-60s it didn't stifle anything, it didn't exist. Since then it's been stifling small business growth and job creation quite well.

You are well wide of any relevance with that one from 50 years ago! VAT didn't exist either and top rate income tax was around 80%!

[youngsyr]

Employer's National Insurance - it stifles employment. At the lower to average end of the pay scale it makes 9 employees cost more than 10 would without it.

[Countdown]

turbobloke said:

Ozzie Osmond said:

RacerMDR said:

Corporation Tax - I hate it! It should be certainly dropped on anything below 1million - as it stifles small business!

How on earth does a 20% tax on profits stifle anything?!

Prior to the Callaghan/Wilson budget of the mid-60s it didn't stifle anything, it didn't exist. Since then it's been stifling small business growth and job creation quite well.

Not sure how it's stifling anything?

If I earn £50k and see a job advertised for £100k am I going to ignore it because I'm still paying 40% tax ?

[The Don of Croy]

I'd prefer to turn this question the other way - as in, what services do you think the state should provide out of general taxation?

Army/Navy/RAF
Police
Customs
Olympics (only joking)

Everything else you get to choose (healthcare, education, transport, bin emptying)

[V8mate]

The Don of Croy said:

I'd prefer to turn this question the other way - as in, what services do you think the state should provide out of general taxation?

Army/Navy/RAF
Police
Customs
Olympics (only joking)

Everything else you get to choose (healthcare, education, transport, bin emptying)

Start a different thread then

[Countdown]

To be honest Im not particularly bothered about Army/Navy/Air Force/Customs or Police either.

[The Don of Croy]

For purely selfish reasons, I'd remove corporation tax. 20% more for me to play with.

[andymadmak]

Corporation tax should be set at zero. Then watch the companies flock here, watch business bloom, watch unemployment vanish, watch our pension funds recover massively. Set personal tax at 25% across the board. No NI. No avoidance schemes tolerated. Keep it simple and let people keep more of their money.

[RacerMDR]

andymadmak said:

Corporation tax should be set at zero. Then watch the companies flock here, watch business bloom, watch unemployment vanish, watch our pension funds recover massively. Set personal tax at 25% across the board. No NI. No avoidance schemes tolerated. Keep it simple and let people keep more of their money.

I agree with this. If you got rid of the stupidly retarded HMRC......you'd save the well published massive amount.

Everybody pays a fair 25% regardless.

I doubt there would be the need for avoidance schemes

[Asterix]

Far too simple, obvious and right.

However, where would all the bureaucrats go if you got rid of bureaucracy - not sure I'd want them in private industry!

[Odie]

TheEnd said:

I was going to say personal taxes, but I'd guess that wages would drop to suit (ie, why pay people the same when last year they were happy enough with 20%+ missing from their wage packets).

Wages cant really drop though, its against the law (is it law? not sure, i know companys cant do it) to lower someones wage. The wages would probably just stagnate, but we are already in that situation. with the majority of people get no or reduced cost of living increases.

[youngsyr]

RacerMDR said:

andymadmak said:

Corporation tax should be set at zero. Then watch the companies flock here, watch business bloom, watch unemployment vanish, watch our pension funds recover massively. Set personal tax at 25% across the board. No NI. No avoidance schemes tolerated. Keep it simple and let people keep more of their money.

I agree with this. If you got rid of the stupidly retarded HMRC......you'd save the well published massive amount.

Everybody pays a fair 25% regardless.

I doubt there would be the need for avoidance schemes

Sounds ideal, until you realise that with no CT, and no NI, the flat rate of tax would need to be vastly higher than 25% to cover the shortfall, even with a substantial pick up in employment.

Even with CT and NI, I suspect the flat rate would need to be in the high 30%/low 40% range, as don't forget, the vast majority of income tax is paid by the tiny minority with the highest incomes, who will largely be paying over 30% effective rate.