Originally Posted by
KerrAvon
Corporate tax rates are just one of a range of taxes and expenses that companies operating in the UK face. As Howdy has mentioned, business rate are another form of taxation. In addition land prices, wage rates and energy costs will be different from those in the countries that are competing to host the companies that operate, employ people and pay taxes in the UK.
The point is one of equilibrium; one can assume that the companies who operate, employ and pay taxes in the UK are the ones that consider the conditions in the UK to favour doing so. If you increase corporate tax rates, extend worker’s rights (which, before you go all morally superior, I am not necessary opposed to) and unleash the Trade Unions to cause mayhem of a type last seen in the 80s you shift that equilibrium by making the UK a less desirable place to do so. I assume that you can agree that? If you can’t, perhaps you can explain why?
As for Ireland having a corporate tax rate of just 12.5%, you will recall that I recently posted a link to an article that reported that Ireland had the 4th best standard of living in the world. Your response was that there was nothing within the article that indicated that low tax rates had increased tax revenues (by encouraging companies to choose to pay their taxes there). I found that quite revealing and confirmative of my suspicion that increased taxation rates is an article of faith for the current Labour membership as opposed to a means to an end.
Again, I think the notion that this site has a pro-conservative majority is an example of paranoia. Roly is still reeling over the claim not to be a Socialist that you made last week.