Cable Forum - The Chronicles of Rishi

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Re: The Chronicles of Rishi

Quote:

Originally Posted by Mr K (Post 36168858)

Thing is Den, they think tax cuts will save them, running down public services even more. Totally out of touch. Not surprising, since none of them use public services.

Polling suggest the vast majority don't want tax cuts but want better funded public services.

Re: The Chronicles of Rishi

Quote:

Originally Posted by denphone (Post 36168861)

Polling suggest the vast majority don't want tax cuts but want better funded public services.

Suspect there's a big gap between Conservatives and the electorate on this. Conservatives are being dragged away from what their boots on the ground are telling them by the need to keep up with the agenda set by UKIP and Farage.

Re: The Chronicles of Rishi

Maybe folk don't want tax cuts but how many would support tax rises. Especially in the middle classes - lower end of the higher tax bracket. Left wing parties have a history of increasing the higher rates sometimes to eye watering amounts but the really rich will find ways to avoid it.

Re: The Chronicles of Rishi

Imo, the two changes those fools should make are:

1. Restore the tax thresholds immediately;

2. Cut corporation tax.

Re: The Chronicles of Rishi

Quote:

Originally Posted by Sephiroth (Post 36168865)

Imo, the two changes those fools should make are:

1. Restore the tax thresholds immediately;

On 1: get somebody that understands basic maths, to correct the errors on personal allowance. It's ok to lose it once, but twice is not correct. HMRC has given thousands of taxpayers a tax code ending with X. HMRC does not know what to do.

I agree on restoring them

Re: The Chronicles of Rishi

Quote:

Originally Posted by Sephiroth (Post 36168865)

Imo, the two changes those fools should make are:

1. Restore the tax thresholds immediately;

2. Cut corporation tax.

What would be the benefits of cutting Corporation Tax?

Re: The Chronicles of Rishi

Quote:

Originally Posted by Hugh (Post 36168868)

What would be the benefits of cutting Corporation Tax?

I'm not sure whether you are laying a trap here. Why else would you put this question?

But obviously, reducing CT could attract business investment leading to greater wealth.

Re: The Chronicles of Rishi

Quote:

Originally Posted by Sephiroth (Post 36168869)

I'm not sure whether you are laying a trap here. Why else would you put this question?

But obviously, reducing CT could attract business investment leading to greater wealth.

Greater wealth for who?

The U.K. already has permanent full expensing (100% tax deduction) for all qualifying plant and machinery investments - this has increased total business investment by £14 billion over the forecast period or £3 billion a year (1.2 per cent on average)…

https://obr.uk/box/the-impact-of-cor...20March%202023.

You may (or may not) find this research of interest…

https://www.ippr.org/articles/cuttin...ing-investment

Quote:

The way corporation tax cuts are justified goes something like this: the UK has low levels of productivity and low levels of capital investment, and both need to rise. By cutting tax rates, this reduces the tax bill of firms, putting money on their balance sheet that they will then invest in capital or research and development (R&D), which will result in economic growth. A secondary aim is that by having a 'competitive' tax rate (ie lower than comparable countries) the UK will be a more attractive investment destination.

The problem with this story is that it has not turned out like that. Whilst UK corporation tax rates have fallen since 2007, private sector investment is still amongst the lowest in the OECD, the lowest in the G7, and far below the average among developed economies. Corporate tax cuts have failed on their own promise.

As shown in figure 2, compared to comparable countries such as the USA, Germany, France and Japan, the UK has low private sector investment as a proportion of GDP. In 2019 the UK fell behind Italy and Canada to have the lowest private sector investment in the G7 as a proportion of GDP (figure 3).

Within the OECD group of developed economies, the UK fell in the rankings from mid-range in 1995 to second from bottom in 2008. In the past decade, the UK’s highest ranking for private sector investment within the OECD was in 2016, when it ranked 28th out of 35 countries. In 2020, the most recent year for which we have good data, the UK was 28th out of 31 OECD countries, and bottom of the G7 (table 1).

What is clear from this is that cutting corporation tax has failed to increase the UK’s dire levels of private sector investment. In fact, while we have been engaged in the race to the bottom on business taxation, our relative performance on business investment has been worsening.

Quote:

Figure 4 compares the UK to other OECD countries (for whom we have data) on levels of corporate taxation and private sector investment in 2020. Firstly, there is little to no correlation between low corporation tax and higher levels of private sector investment. Secondly, the UK is already amongst the lowest tax rates in the OECD and, as already established, the lowest levels of private sector investment. Lastly, most developed economies have both higher rates of corporation tax and higher levels of private sector investment.

Quote:

What can we conclude from this?

1. Cutting corporation tax is no panacea for raising investment

2. Over the past decade we have cut corporation tax, and this has failed on its own promise of increasing private sector investment

3. Despite having some of the lowest levels of corporate taxation in the OECD, we also have some of the lowest levels of business investment

4. Most of our competitors have much higher levels of both corporation tax and investment

tl:dr - it’s not that simple

Re: The Chronicles of Rishi

Quote:

Originally Posted by Hugh (Post 36168870)

The U.K. already has permanent full expensing (100% tax deduction) for all qualifying plant and machinery investments - this has increased total business investment by £14 billion over the forecast period or £3 billion a year (1.2 per cent on average)…

https://obr.uk/box/the-impact-of-cor...20March%202023.

You may (or may not) find this research of interest…

https://www.ippr.org/articles/cuttin...ing-investment

tl:dr - it’s not that simple

Just as well that I did not add "simples" to my post!

Re: The Chronicles of Rishi

Quote:

Originally Posted by Ms NTL (Post 36168873)

See Ireland

Again, not that simple…

https://velocityglobal.com/resources...hoose-ireland/

Quote:

In a recent Economist Intelligence Unit report, 46% of respondents highlighted “access to EU markets” as the most important competitive advantage of doing business in Ireland.

Respondents prioritized Ireland’s strategic location over other key advantages, including access to local skills and the country’s low corporate tax rate.

https://www.nathantrust.com/insights...-us-tech-firms

https://www.cableforum.uk/board/atta...7&d=1706564940

Re: The Chronicles of Rishi

https://www.theguardian.com/politics...whatsapp-group

Quote:

Kemi Badenoch is member of ‘Evil Plotters’ Tory WhatsApp group

Exclusive: Business secretary who has told party rebels to stop ‘stirring’ and back PM is in group along with Michael Gove

Kemi Badenoch is a member of a Conservative WhatsApp group called “Evil Plotters” despite telling party rebels to “stop messing around” and get behind Rishi Sunak, the Guardian can reveal.

The business secretary, who consistently comes out as the favourite cabinet minister in polls of Tory members, has criticised party colleagues for “stirring” up suggestions that she could replace the prime minister.

In a round of broadcast interviews on Sunday, she dismissed speculation over the plot to topple Sunak as “Westminster tittle-tattle” and said colleagues who put her name forward as an alternative were “not my friends”.

However, the Guardian has been told that Badenoch and Michael Gove, the levelling up secretary, who is regarded as a key backer, are members of a WhatsApp group of similarly minded Tory MPs who are rallying round the business secretary’s longer-term ambitions.

Tory sources said that while Badenoch was not actively plotting to remove Sunak before the next election, her team was ready to “leap into action” should the prime minister be forced out, or if he stood down as party leader following an election defeat.

What would be nice, imho, is that the people supposedly running the country focused on actually doing their current jobs rather than seemingly spending a large proportion of the time and efforts in trying to set up their next job…

Re: The Chronicles of Rishi

Quote:

Originally Posted by Hugh (Post 36169131)

https://www.theguardian.com/politics...whatsapp-group

What would be nice, imho, is that the people supposedly running the country focused on actually doing their current jobs rather than seemingly spending a large proportion of the time and efforts in trying to set up their next job…

:tu:

Re: The Chronicles of Rishi

A Conservative appointed independent inquiry has ruled there was no corruption involved when the Conservative mayor of Teesside sold land worth £120 million to two tory chums for £100, thank goodness that's been cleared up :erm:

Re: The Chronicles of Rishi

Quote:

Originally Posted by TheDaddy (Post 36169188)

Yep its the usual sweep it under the carpet Tory whitewash which many of us have got used to these past few years.