05-12-2016, 02:33 PM
21
Re: Corbyn to try to amend Article 50
Originally Posted by Flicker
->
Yes you could become a tax haven even after all the squawking UK citizens make about those having money them.If you cut corporation tax any further I don't know it will make that much difference if the companies don't have access to the single market. Plus the amount of money the UK would lose would be hugely detrimental to the NHS, and all the other services the govt provides.
The EU imports relatively little food from the UK and it can source what it needs from inside the EU. There is no leverage there.
You can put whatever price you want on goods ...the question is whether the buyer will buy them. The UK will be in direct competition with 27 countries who pay no tariffs between them, has no raw materials to speak of itself, so must turn them around (buy in high and sell higher) when the EU has special deals with places that do supply raw materials.
Access to raw materials will be on the terms dictated by the seller because its deals with the EU are far more advantageous just in terms of market share. It is far easier to tell the UK to go away especially when you can get the stuff cheaper in the EU at a guaranteed quality, understood paperwork and transport routes.
Of course ne deals can be made...but in real terms this takes years.
Are you sure the UK can take years of the austerity that saw the left behinds so disillusioned?
Very contradictory. In one breath the buyer sets the terms. In the next it's the seller.
Trade agreements can and have been made in months. That would be the benefit of not having to get 27 conflicting states to agree.
05-12-2016, 02:57 PM
22
Re: Corbyn to try to amend Article 50
Originally Posted by Flicker
->
Yes you could become a tax haven even after all the squawking UK citizens make about those having money them.If you cut corporation tax any further I don't know it will make that much difference if the companies don't have access to the single market. Plus the amount of money the UK would lose would be hugely detrimental to the NHS, and all the other services the govt provides.
The EU imports relatively little food from the UK and it can source what it needs from inside the EU. There is no leverage there.
You can put whatever price you want on goods ...the question is whether the buyer will buy them. The UK will be in direct competition with 27 countries who pay no tariffs between them, has no raw materials to speak of itself, so must turn them around (buy in high and sell higher) when the EU has special deals with places that do supply raw materials.
Access to raw materials will be on the terms dictated by the seller because its deals with the EU are far more advantageous just in terms of market share. It is far easier to tell the UK to go away especially when you can get the stuff cheaper in the EU at a guaranteed quality, understood paperwork and transport routes.
Of course ne deals can be made...but in real terms this takes years.
Are you sure the UK can take years of the austerity that saw the left behinds so disillusioned?
You are quite correct about new deals, they do take years and years, however we can still trade under WTO Rules, most of the World does.
A trade war with the EU would do both no good at all and in spite of what is said in the UK Media, it will hurt us far more than it will hurt the EU in terms of GDP, simply because the EU is a much larger economy.
I disagree completely about the Corporation Tax issue.
In France, Corporation Tax is over 33%.
Companies are responsible to their shareholders, they will move HQ here, so we will gain from cutting Corporation Tax in terms of tax received, whilst France and others will lose massively.
Basically we will adopt the Luxembourg Model, which as you know, is a very wealthy country.
05-12-2016, 03:02 PM
23
Re: Corbyn to try to amend Article 50
Indeed companies are considerate of their shareholders but even if they pay les tax they will have to at least maintain their business profits.Which I really do not think would happen if being in the UK gives them no extra capacity to do business with potentially half a billion customers .
Any savings in corporation tax will be off set by loss of profits.
But it isn't a case of one business equals one head office.
Most large corporations are located all across Europe. The savings of closing one down will also more than compensate for the higher tax elsewhere where they already are.
I am aware of French tax...and I know there I rom for improvement there...it is being considered. Watch the elections next year.
05-12-2016, 03:29 PM
24
Re: Corbyn to try to amend Article 50
Originally Posted by Flicker
->
Indeed companies are considerate of their shareholders but even if they pay les tax they will have to at least maintain their business profits.Which I really do not think would happen if being in the UK gives them no extra capacity to do business with potentially half a billion customers .
Any savings in corporation tax will be off set by loss of profits.
But it isn't a case of one business equals one head office.
Most large corporations are located all across Europe. The savings of closing one down will also more than compensate for the higher tax elsewhere where they already are.
I am aware of French tax...and I know there I rom for improvement there...it is being considered. Watch the elections next year.
I think we have a different understanding of the situation.
If the goods are manufactured in the EU, or the services provided in the EU, there are no Tariffs to pay, companies will still be able to grow and expand in the EU.
So, Citroen still make cars in France, but the HQ is in the UK.
Taxes are payable on the profits made in France, so the HQ in the UK charges them a fortune for advertising, Corporate Services etc, so the profits are made in the UK and taxed at 5%, and little or no profit is made in France, and any that is is charged at 33%.
It is a no brainer.
06-12-2016, 10:11 AM
25
Re: Corbyn to try to amend Article 50
It was my understanding that profits are usually taxed where the sales occur...hence the row about Microsoft, Facebook etc. which based their "address" in Ireland but sold across the globe and paid very little tax.and tax is paid on PROFIT, not sales.
For instance:
http://www.independent.co.uk/news/uk...-a6844676.html
Companies don't need low corporation tax when it can dodge tax altogether.
https://www.ft.com/content/1c8b85f2-...1-00144feabdc0
(yes I know that was 2012 but he principle remains the same).
The real kicker in all this is that the UK taxpayer SUBSIDISES benefits to companies in the UK which pay no tax in the UK.
https://www.theguardian.com/politics...93bn-handshake
"Many of the companies receiving the largest public grants over the past few years previously paid little or zero corporation tax,"
The point being you can reduce corporation tax to zero but the companies can choose where to pay "no tax" from pretty much anywhere in the world. It is an empty gesture.
06-12-2016, 10:53 AM
26
Re: Corbyn to try to amend Article 50
Looks, to me, as if what Corbyn is really trying to do is to join a group of Remain MPs, of various parties, to prevent Teresa May from getting the majority she needs in getting a quick bill through parliament.The spin off from that, if the bill is killed, would be hero status for Lib Dems,and Corbyn, and they would be able to milk the fame created - along the lines of what Farage has managed to do when he claimed that Brexit was all down to him!
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