It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
The CBI say the UK's main corporation tax rate is higher than the EU average.
An expensive and complex corporate tax regime is hitting the UK's reputation as an attractive business location, according to a CBI survey.
The business organisation polled top executives in nearly 100 major firms and found that two-thirds were unhappy with the government's tax regime.
It was a major factor for the 20% of firms that had shifted some operations abroad and the 30% considering it.
The results were unveiled at the start of the CBI's annual conference.
The Treasury rejected the idea that the UK was uncompetitive because of heavy taxes.
"The World Bank recently found that the typical UK business faces the lowest total tax rate in the G7, the fifth lowest in the OECD," said a Treasury spokesperson.
Britain emerged as having the 42nd-lowest business tax burden out of the 175 countries covered, with taxes equivalent to 35.4 per cent of annual profits.
Yet this was by far the lowest figure out of the Group of Seven leading industrial economies.
The next-lowest was Canada, with taxes equivalent to 43 per cent of profits.
The United States’s figure was 46 per cent, Japan’s 52.8 per cent and France’s 68.2 per cent.
Britain’s figure was also lower than the 47.8 per cent average for the 30 rich country members of the Organisation for Economic Co-operation and Development.
The study also scored Britain better than its G7 industrial competitors in terms of measures of the number of tax payments required each year and the number of hours each year that an average, medium-sized company is forced to devote to tax compliance.
Originally posted by danwild6
I have to say those are some eye opening statistics. Americans often consider themselves the most business friendly people in the world.
As far as the stance of the CBI I think it shows that they're little more than a partisan group out for its own interests at the expense of the rest of society.
I doubt they're going to get much support in England in the US they'd just sign a few checks and be done with it.
US Government spending has increased faster under George Bush and his Republican Congress than it did under Bill Clinton, and more people work for the federal government today than at any time since the end of the Cold War.
During Bush’s first term, total government spending skyrocketed from $1.86 trillion to $2.48 trillion, an increase of 33 percent (almost $23,000 per household, the highest level since World War II). The federal budget grew by $616.4 billion during Bush’s first term in office.
If post 9/11 defense spending is taken off the table, domestic spending has ballooned by 23 percent since Bush took office.
When Bill Clinton left office in 2000, federal spending equaled 18.5 percent of the gross domestic product, but by the end of the first Bush administration, government outlays had increased to 20.3 percent of the GDP. The annualized growth rate of non-defense and non-homeland-security outlays has more than doubled from 2.1 percent under Clinton to 4.8 percent under Bush.6
Increased spending inevitably means increased taxes. Thus, despite President Bush’s much vaunted tax cuts, Americans actually pay more in taxes today than they did during Bill Clinton’s last year in office.
The 2006 annual report from Americans for Tax Reform, titled “Cost of Government Day,” sums up rather nicely the intrusive role played by Republican government in the lives of ordinary Americans.
The report says that Americans had to work 86.5 days just to pay their federal taxes, as compared to 78.5 days in 2000 under Bill Clinton.
In other words, the average American has worked 10.2 percent more for the federal government under George Bush than under Bill Clinton.
When state and local taxes (controlled in the majority of places by Republicans) are added to federal taxes, Americans worked for the government eight hours a day, five days a week, from January 1 until July 12, meaning they worked full-time for the government for more than half the year.
As Tom Feeney, a congressional Republican put it: “I remember growing up and reading in some school textbooks that if more than half your paycheck went to the government, then you were living in a socialist society.”
link and factual references here
[edit on 8-12-2006 by sminkeypinkey]
Originally posted by sminkeypinkey
nowthenlookhere the issue isn't whether business is a part of society or not, of course they are.
The point is when they lie to try and get favours and various financial advantages (not generally available to the rest of society) from the rest of us in wider society.
That's what they were doing here and they got busted as lying.
Originally posted by nowthenlookhere
Hmmm, I thought this thread was about the tax rate, not corporate corruption.
However punitively taxing business themselves is like eating a portion of your seed stock
Originally posted by sminkeypinkey
....would releasing false public statements count as corruption?
It also highlighted fears over the UK rate of corporation tax, which has slipped from 10th best in the OECD (a group of 30 leading developed nations) in 2000 to 18th in 2005.
At 30%, the main UK corporation tax rate is about five percentage points higher than the EU average and compares poorly to that of the Irish Republic, a key competitor, which has a rate of 12.5.
The world's third-largest bank, HSBC, recently said it could cut £400m off its annual tax bill if it relocated its UK head office abroad.
Tax and regulatory factors have also led two companies in the Lloyd's insurance market, Hiscox and Omega, to announce that they are relocating to Bermuda.