I’m going to give up work.

[Baron von Lotsov]

They have had to do this because your average Joe doesn't understand the economic mechanics of Corporation Tax. They have to have the effect put on paper in front of them, unlike Labours 26% which is a stealth tax on the public. When they stick the extra 7% CT on Tesco where is it going? To Joe public, and it's going to cost them a 10% hike on high street prices.



And if I'm not mistaken food takes up the vast majority of the poorer in societies money. So corbyn has just wracked the most vulnerable in society, socialism at its best.

I see most taxes would have a similar effect. To use your example, hiking VAT would look similar to the customer. All tax is money earnt by the people where control of that money is taken from them by an authority to share between their own selves and on things for the public. There are a few instances where the public are better off doing this, such as money for roads and that kind of infrastructure. The other component in this is redistribution. However it can be argued that redistribution would not need to be so severe if there were not distortions in the market in the first place. If people were free to earn money they would not have to rely on redistributed money. Clearly there are instances where they simply can not work and need the help of others to survive, but where we go wrong is we go far beyond that and we end up handing over control of our money to an authority in education. When the authority has the power to buy our education then a huge conflict of interests arises.

[Churchill]

But comrade Corbyn doesn't care. All he wants is #10 on his CV and then he will retire with his 200K a year pension.

I am no economist that is for certain but even I can see what will happen, he and his far left Comrades are ignoring the Elephant in the room hoping Labour supporters will not notice and vote them in because its what they have always done,

[Borchester]

But is isn't a 7% increase it is 7 points; the rate of increase is around 35%! Economically insane, if these economic cretins get in and are allowed to implement their plans every taxpayer will pay more and the economy will go down the drains. As Nick points out the only beneficiaries will be the usual work shy  freeloaders!

I had not looked at it that way but you are right.



7/19  = 0.368 = 37% as near as damn it. It really is fields of corn and ballet in the evenings with Wurzel, although I can't see how he intends to subsidise  the ballet company.

[Major Sinic]

A mere 7% increase. We will still be able to compete with the Irish on 12.5%  

But is isn't a 7% increase it is 7 points; the rate of increase is around 35%! Economically insane, if these economic cretins get in and are allowed to implement their plans every taxpayer will pay more and the economy will go down the drains. As Nick points out the only beneficiaries will be the usual work shy  freeloaders!

[BeElBeeBub]

To link to the topic here

https://politicalforums.uk/pol/viewtopic.php?f=18&t=325">https://politicalforums.uk/pol/viewtopic.php?f=18&t=325



Many here are sure that Corbyn's policies will have various undesirable effects on prices, wages, investment etc

As night follows day tax businesss more their prices have to go up to compensate, jobs go wages stagnate a vicious circle

A mere 7% increase. We will still be able to compete with the Irish on 12.5%

It's the equivalent of killing the goose that lays golden eggs

How can you predict this? Economic predictions are all garbage apparently. Nobody can predict what the effect of increasing costs to business will be.



At least that is the reasoning the same group have given for ignoring assessments of the impact of brexit.



So I ask again, why can you predict what the effect of hiking Corp tax to 26% or upping the minimum wage will be, when you cannot predict the effect of making trade with our biggest and closest partners more costly (and in some cases impossible)?



 :shrg:



For clarity: i'm not defending Corbyn's policies.  I believe there are some pretty big flaws in them and that they are likely to have a negative effect overall.

[Nick]

As night follows day tax businesss more their prices have to go up to compensate, jobs go wages stagnate a vicious circle

But comrade Corbyn doesn't care. All he wants is #10 on his CV and then he will retire with his 200K a year pension.

[Churchill]

As night follows day tax businesss more their prices have to go up to compensate, jobs go wages stagnate a vicious circle

[Nick]

The conservatives have pitched scrapping a planned Corp tax cut on the grounds that it would "save" (i.e. the treasury wouldn't lose) around £6bn (iirc) which they would then spend on services.



What's interesting is that the planned cut was sold on the basis that cutting corp tax would increase revenue by stimulating business growth (and hence tax take) by more than the cut.



So they are not doing something they said would provide more money for services in order to provide more money for services.

They have had to do this because your average Joe doesn't understand the economic mechanics of Corporation Tax. They have to have the effect put on paper in front of them, unlike Labours 26% which is a stealth tax on the public. When they stick the extra 7% CT on Tesco where is it going? To Joe public, and it's going to cost them a 10% hike on high street prices.



And if I'm not mistaken food takes up the vast majority of the poorer in societies money. So corbyn has just wracked the most vulnerable in society, socialism at its best.

[Churchill]

The conservatives have pitched scrapping a planned Corp tax cut on the grounds that it would "save" (i.e. the treasury wouldn't lose) around £6bn (iirc) which they would then spend on services.



What's interesting is that the planned cut was sold on the basis that cutting corp tax would increase revenue by stimulating business growth (and hence tax take) by more than the cut.



So they are not doing something they said would provide more money for services in order to provide more money for services.

Corporation Tax on businesss is a very fine line that the Government of the day has to tread, tax them too much and that can have a very detrimental effect on businesses , less money that can be spent on wages, conditions, research, and expansion.



For any business what is important and vital at the end of the year is not what their turn over is but what is " left over" after all their costs have been paid, tax them too much and they will leave move to any country that gives them a lower rate of taxation, Labour as usual will either drive them out or under.

[Baron von Lotsov]

The conservatives have pitched scrapping a planned Corp tax cut on the grounds that it would "save" (i.e. the treasury wouldn't lose) around £6bn (iirc) which they would then spend on services.



What's interesting is that the planned cut was sold on the basis that cutting corp tax would increase revenue by stimulating business growth (and hence tax take) by more than the cut.



So they are not doing something they said would provide more money for services in order to provide more money for services.

We don't want their services. Give ze money back!!!



If we want services we can then afford to buy them.

[BeElBeeBub]

The conservatives have pitched scrapping a planned Corp tax cut on the grounds that it would "save" (i.e. the treasury wouldn't lose) around £6bn (iirc) which they would then spend on services.



What's interesting is that the planned cut was sold on the basis that cutting corp tax would increase revenue by stimulating business growth (and hence tax take) by more than the cut.



So they are not doing something they said would provide more money for services in order to provide more money for services.

[Nick]

A mere 7% increase. We will still be able to compete with the Irish on 12.5%  

Exactly, it just shows how out of touch they are with how an economy works with business. It's the equivalent of killing the goose that lays golden eggs.

[Borchester]

Wurzel says he will hike Corporation Tax to 26%.

I will spend as much as I can on useless trips around the world before I'll pay his additional tax.

A mere 7% increase. We will still be able to compete with the Irish on 12.5%  

[Nick]

Income tax rates are pretty much the same as those in the UK. The reason for the low corporation tax rate is to attract foreign investment which will take Irish workers off the dole queues. That means that the state saves by not paying benefits and is also able to tax the now employed workers. There is no need to increase the actual tax rate.

Wurzel says he will hike Corporation Tax to 26%.

I will spend as much as I can on useless flights around the world before I'll pay his additional tax.

[Borchester]

Hmm, I was not aware of the Chinese tax rate. I figured it was probably a low tax country because of its economic growth rate. When you are allowed to earn your own money and spend it on what you choose to spend it on then it encourages one to work harder. The regulation is simpler in China and most of the government's involvement is is infrastructure, not social control. Places like Ireland are like tax havens for global corporations. They cut corporation tax so giant global industry saves on tax if it puts a plant in the country, then they tax the workers hard I suppose!

Income tax rates are pretty much the same as those in the UK. The reason for the low corporation tax rate is to attract foreign investment which will take Irish workers off the dole queues. That means that the state saves by not paying benefits and is also able to tax the now employed workers. There is no need to increase the actual tax rate.