Cable Forum - View Single Post - Budget 2011: Government 'due £8bn windfall'

Chrysalis · 23-03-2011, 17:35

why am I not surprised on the carbon tax. That one is indeed nasty as already some of the poor pay over 40% of income on electric/gas. It does seem they going out of their way to make (a) low income pay more tax and especially (b) shift taxation to benefit claimants. Easily done by taxing essentials and not taxing income.

All I am seeing is taxation been shifted from forms of taxation that the poor are excempt from such as income tax and NI (both benefit claimants dont pay and low income pay less), to consumption taxation which affects everyone equally and as a result is disproportioned to ability to pay.

My view on the corp tax is just my view yes, obviously I cannot state fact for something that hasnt happened, my view is quite simple really.

If a company wants to save on corp tax they will simply go to a tax haven, dropping a few % wont change that as the tax haven will still be cheaper, so all it will really serve is to boost profits, increase shareholder dividends as a result of the boosted profits and enlarge some exec bonuses. There is a slim chance workers would see wage increases as a result but I think that is unlikely. I would be extremely surprised if corp tax intake increased following this change.

23-03-2011, 17:35	#35
Chrysalis cf.mega poster Join Date: Sep 2003 Posts: 12,050	Re: Budget 2011: Government 'due £8bn windfall' why am I not surprised on the carbon tax. That one is indeed nasty as already some of the poor pay over 40% of income on electric/gas. It does seem they going out of their way to make (a) low income pay more tax and especially (b) shift taxation to benefit claimants. Easily done by taxing essentials and not taxing income. All I am seeing is taxation been shifted from forms of taxation that the poor are excempt from such as income tax and NI (both benefit claimants dont pay and low income pay less), to consumption taxation which affects everyone equally and as a result is disproportioned to ability to pay. My view on the corp tax is just my view yes, obviously I cannot state fact for something that hasnt happened, my view is quite simple really. If a company wants to save on corp tax they will simply go to a tax haven, dropping a few % wont change that as the tax haven will still be cheaper, so all it will really serve is to boost profits, increase shareholder dividends as a result of the boosted profits and enlarge some exec bonuses. There is a slim chance workers would see wage increases as a result but I think that is unlikely. I would be extremely surprised if corp tax intake increased following this change.