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Should we scrap benefits and pay everyone £100 a week?

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I was just trying to add to your discussion but I did come across as dismissive, apologies for that. You are right though, we can't expect corporations to raise wages if we cut their tax. Evidence suggests that firms just hoard more profits and incomes rise disproportionately for the upper management most of the time when we cut taxes.

I don't think we could ever pay for the upkeep for our infrastructure if we cut taxes to nothing. The revenue that the government could generate from more disposable income wouldn't make up for it I think. Besides our top corporation tax rate of 17% is grossly low especially since we have so much legal tax avoidance and tax evasion and transfer of profits.

Corporation tax is currently 20%, , by the end of this parliament it will be 17% (2020 for those who dont know). Your point about infrastructure js a interesting one i support privatisation of state assets apart from nhs and emergency services, whilst tax is geing cut businesses will grow as they keep more income to expand,generally speaking this will create more jobs, it nay also incetivse companies to pay UK tax rather than pay it in the Cayman Islands, Bemuda and Gibraltar

Reply 61

NabeelS

Original post by ChildOfTony

This does not work in practice, retained profits are either invested if the firm isn't controlled through private equity other wise profits are transferred out and into the pockets of money managers. I've worked in Economics and Investment Banking, I have some experience of this process.

Because of imbalanced trade and comparative it is inevitable that someone will pip the UK to lower taxes to attract corporations and then it is a race to the bottom and only corporations benefit, and a culture of robber barons exists. Countries with low populations like the Caymans, Bahamas, Luxenbourg and Panama already do this and they can because they have a lower tax burden because of lower populations.

Reply 62

ChildOfTony

Original post by NabeelS

It could work in theory though?

Reply 63

NabeelS

Original post by ChildOfTony

It could work in theory though?

Haha absolutely but we will have to make assumptions and these assumptions will have to be justified. Won't hold up as a general theory though.

Reply 64

ChildOfTony

Original post by NabeelS

Haha absolutely but we will have to make assumptions and these assumptions will have to be justified. Won't hold up as a general theory though.

Thats the way id lije to run things as everyone would get richer that way, theoretically the companies will make mire profit (unless theres a crash) and this neans employees can be paid more rdducing the tax credits bill so that money can get invested elsewhere i would agree with everything you say if you are talking business but im tryinb to find ways to cut in wofk benefits to reduce ghe welfare bill

Reply 65

hlyon200

The idea of giving everyone more is utter rubbish. Thought I might chuck this in: https://www.youtube.com/watch?v=xtpgkX588nM A very interesting watch

Reply 66

NabeelS

Original post by ChildOfTony

I guess it can work but tax credits actually have a massive unintended consequence where they incentivise employers to cut wages because the government is topping up wages with tax credits. This has been observed particularly at Walmart where the US federal government subsidises labour costs to the tune of $8 billion largely because the workers receive welfare that makes them just about survivable wage.

Reply 67

picklescamp

http://www.newstatesman.com/politics/welfare/2016/04/what-would-society-look-universal-basic-income

Just gonna leave this here

Reply 68

That Bearded Man

Original post by hlyon200

The idea of giving everyone more is utter rubbish. Thought I might chuck this in: https://www.youtube.com/watch?v=xtpgkX588nM A very interesting watch

A very interesting argument there from Friedman.

Agree with the comments below it - if only all political "debates" were like that

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Reply 69

Davij038

Original post by That Bearded Man

A very interesting argument there from Friedman.

Agree with the comments below it - if only all political "debates" were like that

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Although I disagree with him, I have massive amounts of respect for Friedman. Far more courteous, humble, open minded and genuine than most of today's right-libertarians.