Some economists have written to the FT saying that the 50% tax rate harms the economy.
This has got me thinking - do you support the 50% tax rate:
a) In general b) If it raised no net tax due to leakage, would you still support it? c) If it did raise tax short term but by lowering growth in the long term meant that it did not reduce debt as a % of GDP
on b) and c) if you still support it, what is the reasoning?
I would personally like to see a crackdown on avoidance, on the basis that a 50% rate it useless if we do not enforce it on the rich. All we do is capture a small number of people who are rich enough to be caught (due to other changes anyone on £100k +) but not rich enough to avoid it.
I assume in the wake of the UK riots someone somewhere has done a joke about apple launching a blackberry messenger competitor, to be called the iPredictariot.
Channel 4 news just really annoyed me with a piece on Boots - paying little tax on a large operating profit.
But they paid lots of interest, and deducted this for tax. Now in this case the interest is a cost of the acquisition, which I am less sympathetic with. But most interest is a legitimate business expense - you needed money to make something, you borrowed it, the cost reduces your profits (but notably increases someone else's - the lenders). This it seems to me is a legitimate tax deductible expense, in the same way that rent is a deductible expense.
The whole article seemed to me to show a lamentable lack of business knowledge. It makes me ashamed to call myself left wing to see such ignorant comment calling itself reporting.
I find such obvious bias undermines everything it has to say.
And then they followed it up with a bit on Puma, who, very commendably, started to publish an environmental impact assessment of the whole supply chain. C4's response - isn't your whole business damaging the environment by encouraging consumerism?
I find it hard to counter the right's argument of bias in the broadcast media with this to defend. Leave such blatant bias for Fox news - C4 news should be above this!