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Should corporation tax be scrapped? watch

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    Corporation tax just seems to be a superficial way for the government to appear that they are taking on these big companies but actually just hurts ordinary people.

    If the government tells a corporation that they need to pay an extra £100 million in corporation tax, the corporation has to find £100 million. They don't find it by lowering the salary of the CEO, they find it by raising the prices of their goods and lowering the wages of their employees. So you've basically just screwed a lot of ordinary people.

    Does anyone else wish that ideas were based more on economic sense, not on populist rah rah lets punish rich people knee jerk reactions?
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    The company would lower wages and put prices up anyway if there was £100m to be made, that's how capitalism works.
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    I can't find the link, but I remeber reading that corporation tax returns are minimal compared to personal taxation (it was something like £70bn versus £600 bn.)
    Of course we can't tax them nothing for moral reasons, and corporations don't instantly raise prices/slash wages, as that puts off workers and customers, especially in this day and age. Most likely they will try and find effeciency savings.
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    Barclays, 1pc. *******s.
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    Your argument doesn't make sense. CT doesn't force companies to "find" an extra £100m because it is based no profits, not costs.

    You say nothing specific about corporate tax, it applies to all other types of tax too - you are essentially saying we shouldn't tax anyone. I don't see why taxing companies less than individuals makes sense - companies are not special business enterprises, they represent a number of individuals.

    If CT was abolished, people could simply incorporate a company and get paid through the company rather than as individuals. This is what happened when the last government gave CT breaks to small companies: taxi-drivers and plumbers simply incorporated a company and worked through that company to pay less tax.
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    (Original post by pol pot noodles)
    I can't find the link, but I remeber reading that corporation tax returns are minimal compared to personal taxation (it was something like £70bn versus £600 bn.)
    Of course we can't tax them nothing for moral reasons, and corporations don't instantly raise prices/slash wages, as that puts off workers and customers, especially in this day and age. Most likely they will try and find effeciency savings.
    Yes it is much smaller. However ultra low levels of corporation tax are not necessarily going to be the saviour of an economy. Ireland undercut the rest of the EU with its low levels of corporation tax and it did attract foreign investment, but the Irish economy ended up in a bad mess and they are now unbalanced and hostage to foreign companies. Their GNP is much lower than their GDP because of the amount of their industry which is foreign owned, and when they go back asking the EU for more money and the EU demands that they stop undercutting them on corporation tax, Ireland will be screwed when foreign companies move out.
 
 
 
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