Quote:
Originally Posted by Flyboy
From what I understand from my accountants the increase is going to cost one hundred and fifty pounds per employee. That represents about four thousand pounds extra oper year for my business. Not too bad, considering. Plus there's a couple of extra allowances we can claim.
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Not done the maths but if you like paying taxes that much that's your prerogative. Other businesses and independent think tanks seem to disagree.
Quote:
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The Centre for Economics and Business Research, an independent forecaster, has calculated that the tax rise could cost 57,000 jobs. The Chartered Institute for Personnel Development has said 12 per cent of employers will cut recruitment and 8 per cent will sack staff as a result.
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A company of say 250 employees will be looking at 37.5k being taken out of the staffing budget, the equivalent of a full time staffer that won't be hired / retained on the same budget.
Fundamentally unnecessary taxation is an unproductive use of money that should be going into the economy, making people wealthier, purchasing goods and services. Having it instead going to the government and only a proportion of it making its' way back into the economy benefits no-one.
That thought is of course only applicable if you aren't
of the opinion that the government is the economy as our present PM is.
---------- Post added at 15:46 ---------- Previous post was at 15:42 ----------
Quote:
Originally Posted by Will21st
IMO the next gov should encourage hard work a lot more by lowering income tax severly and raising VAT a lot more,say to 25 %.
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That would be horrendous. Income tax is a
progressive tax so takes account of some ability to pay while VAT does not. Increasing VAT too highly would reduce consumption of goods and services so people spend less and would potentially reduce overall tax take due to a combination of this reduction in consumption along with increased tax evasion. People buying less would also harm the economy a great deal too. No purchases mean no jobs needed to supply the goods and services in the first place.