Corporation Tax

[format]

Just finished reading this article.

Now, I understand why a relatively low corporation tax might be considered a good idea in the current economic climate - there will be a much higher incentive for corporations to invest in the UK, providing much needed employment etc etc.

But if Monbiot is right, then surely Osbourne's latest proposals are a step too far?

these proposals go ahead, the UK will be only the second country in the world to allow money that has passed through tax havens to remain untaxed when it gets here. The other is Switzerland. The exemption applies solely to "large and medium companies": it is not available for smaller firms. The government says it expects "large financial services companies to make the greatest use of the exemption regime". The main beneficiaries, in other words, will be the banks.

But that's not the end of it. While big business will be exempt from tax on its foreign branch earnings, it will, amazingly, still be able to claim the expense of funding its foreign branches against tax it pays in the UK. No other country does this. The new measures will, as we already know, accompany a rapid reduction in the official rate of corporation tax: from 28% to 24% by 2014. This, a Treasury minister has boasted, will be the lowest rate "of any major western economy". By the time this government is done, we'll be lucky if the banks and corporations pay anything at all. In the Sunday Telegraph, David Cameron said: "What I want is tax revenue from the banks into the exchequer, so we can help rebuild this economy." He's doing just the opposite.

Please, can someone tell me I'm overreacting or is it really as bad as that?

[oolon]

Not charging tax on money that would not otherwise come here sounds like a good idea to me. I think the hope is this will attract companies to have a base here and then hit them up on that for local tax like payroll. A number of companies are moving to zurich and this would be a way to get them to say. Google for example has its euro HQ there.

[Phage]

As an Accountant, I don't like it. It appears to be a ham-fisted attempt to do the right thing.
I would have preferred the Irish policy, particulalrly as it applies to manufacturing.
http://en.wikipedia.org/wiki/Corpora...lic_of_Ireland
And no - their current woes have nothing to do with either their tax policies or their manufacturing base.

[TheAnimus]

I saw this article posted in another thread.

The problem is the way its written is incredibly biased, he doesn't even have the manners to try and pretend that he isn't telling me exactly how to feel. Not think.

He backs up the links to the facts we all know, the reduction to 24% for instance, but he completely fails to provide any links to the actual meat of the matter. Thats not cricket.

Insted he tells us that its just too complex for us, the dear stupid ignorant reader, to understand. So feel this way instead.

This is also why I think people who read the groinaid should be hunted for sport, at least those who read the news of the world have the decensy to know that they are not been told the truth or anythign important.

[badass]

I saw this article posted in another thread.

The problem is the way its written is incredibly biased, he doesn't even have the manners to try and pretend that he isn't telling me exactly how to feel. Not think.

He backs up the links to the facts we all know, the reduction to 24% for instance, but he completely fails to provide any links to the actual meat of the matter. Thats not cricket.

Insted he tells us that its just too complex for us, the dear stupid ignorant reader, to understand. So feel this way instead.

This is also why I think people who read the groinaid should be hunted for sport, at least those who read the news of the world have the decensy to know that they are not been told the truth or anythign important.

It was me that posted the article in the other thread.

If it's true, it's completely wrong. If it's not, the government should go all press complaints commission on his arse. I despise the partisan journalism in this country (an to be fair, the rest of the world)

[Saracen]

....

Please, can someone tell me I'm overreacting or is it really as bad as that?

To be honest, I got no further than the "George Monbiot" byline, and can't be bothered to read any further, since it seems likely to be merely another one of his rants. I barely agree with him on anything else, and see no reason to waste my time working out if I disagree with him on this.

[Lucio]

What people forget is that companies effect on our economy isn't just about the tax they pay. They employe people, order supplies, keep civil servants busy and so on. All of this has a far greater affect on the economy than just paying corporation tax.

[badass]

To be honest, I got no further than the "George Monbiot" byline, and can't be bothered to read any further, since it seems likely to be merely another one of his rants. I barely agree with him on anything else, and see no reason to waste my time working out if I disagree with him on this.

I've not knowingly read any of his articles before since I do not read the Guardian.

I presume it's this guy http://en.wikipedia.org/wiki/George_Monbiot

In which case, i'll take it with a pinch of salt unless I see evidence to back up his claims that TBH make no sense (hence my concern at the allegations he's made)

[TheAnimus]

The guy is just a douche, I get sick to death of all this hypocritical socialists telling us all how to live our lifes, whilst they can do the exact opposite.

That man has spent more hours flying than most people will in their entire life, yet he is talking about cutting down air traffic. Obviously his travel was all vital!

Its like that stupid bint who was trying to employ someone to work on her book, she wanted to discriminate on sex, pay less than the minimum wage, despite her coming out in favour of the London Living Wage been made law. After complaining it was because she herself was poor and couldn't afford to pay more money (unlike companies, which everyone knows get their money from the money tree) she tweeted last week how she'd just bought a new mac..... Money for shiny overpriced PCs but not to pay the legally minimum wage.

Luckily most of these people are kept inside the pages of very poor newspapers, and given how fewer and fewer are reading them, hopefully they will just slowly die out, have a few people left at uni who still think that way (whilst smoking away more money on weed than I lived on total in year).