Tomorrow's Business Today
The lighter side of higher taxes
Today the government rejected calls by some MPs to scrap a planned rise in corporation tax.
Whether that is a good idea or not, I’m not sure. What I do know is that the reaction to it will be, already is, entirely predictable.
So this from Miles Dean at Andersen LLP says: “There appears to be no plan other than tax, tax and more tax. The Government appears bereft of any pro-growth ideas, simply sticking to the notion that hiking the CT rate to 25% will make a difference. The reality is that the PM and his cabinet are out of touch with what the UK needs to kickstart growth.
Increasing taxes has never and will never work. It’s counter-intuitive and counter-productive.”
That’s a punchy view, well expressed (none of this is a criticism of Mr Dean).
It just isn’t surprising that the head of international tax at Andersen would think that.
It would be newsier if he said: corporation tax is actually too low, here is why…
When it comes to tax policy, there isn’t much attempt to find common ground/actually shift the debate.
Left-ish pressure groups and think tanks will always see a corporate profit that looks high and shout for more taxes.
What would be more interesting is if the lefty pressure groups found a tax cut on large companies that they actually support.
And for the corporate world to find moves that would see them and their clients pay higher taxes that they think make sense.
Otherwise what you’ve got is Spurs and Arsenal fans shouting at cross purposes about which team is better*.
I don’t mind watching, but no one is learning anything.
Press release of the day
HMRC hoaxes are the scam of the month, says this from Metro Bank.
Impersonating the tax man is the favoured tactic of the fraudsters, and “consumers need to be aware that telephone numbers can be spoofed and that HMRC will never pressure anyone to make immediate payments”.
There’s an example of how a “classic”, if that is the word, investment scam works.
Stories that will keep rolling
1) Is HSBC doing enough to fend off activist investor Ping An?
2) Do the PMIs suggest the eurozone economy is better than the UKs?
3) How many companies could/should/would get away with following Amazon to demand staff come back to the office?
4) What is InterContinental doing to lure back business travellers?