Missing Tax Link in Labour Policy to Attract Business
Byline: ANTHONY HILTON
IN THE first budget after Margaret Thatcher's general election victory in 1979, the Conservatives cut the top rate of income tax from an effective rate of 92% all the way down to 60%. The result in the following years was that income-tax receipts increased.
In his end-of-summer report in yesterday's Financial Times, an upbeat Chancellor pointed out how, in the early years under Labour after its 1997 victory, the tax rate on company profits, known as corporation tax, has been cut from 33% to 30%. The yield has once again gone up - but this, unfortunately, is less as a result of the incentive and more due to a much tougher attitude by Revenue & Customs to what used to be considered legitimate tax avoidance by companies.
What was missing from the Chancellor's assessment was any sign that he understands how the corporation tax landscape has changed in the years since Labour came to power - …
Questia, a part of Gale, Cengage Learning. www.questia.com
Publication information: Article title: Missing Tax Link in Labour Policy to Attract Business. Contributors: Not available. Newspaper title: The Evening Standard (London, England). Publication date: August 30, 2006. Page number: 29. © Not available. COPYRIGHT 2006 Gale Group.
This material is protected by copyright and, with the exception of fair use, may not be further copied, distributed or transmitted in any form or by any means.