How things change...
And while corporation tax was only major tax lever left after manifesto commitments, it is striking how argument made at successive elections completely turned on its head... ie continuing this chart with ydays OBR numbers takes it to 25% and £82bn from 2024
And while corporation tax was only major tax lever left after manifesto commitments, it is striking how argument made at successive elections completely turned on its head... ie continuing this chart with ydays OBR numbers takes it to 25% and £82bn from 2024
...such commitments were not made ahead of the 2019 election, that contained the cancellation of the further planned cut from 19p to 17p...
Will be interesting to see if future manifestos preemptively preclude main tax rate rises, even in clear emergencies like a global pandemic
Will be interesting to see if future manifestos preemptively preclude main tax rate rises, even in clear emergencies like a global pandemic
IFS warning that uncertainties around pandemic, the squeeze on spending, the speed of bounce back points to possible further tax rises - if Chancellors current balance budget principle to be met. where do they come from, if needed?
IFS: 4.5 million UC claimants face a £80 cut in monthly income in October (obviously the news yesterday was that it had been extended until then... )
IFS: 11% of adults will pay higher rate tax - 1 in 6 taxpayers, after threshold freeze... IFS says raising income tax rates would have been more progressive than freezing thresholds, but it is progressive - ie helps lower income more than high income
IFS points out that Chancellor if he wants to avoid corporation tax on banks hitting 33%, will have to find the money to change the Bank Surcharge
Assumption that 17bn raised from corporation tax hike per year to 25p does assume some profit shifting out of UK, but no hit to investment. IFS concludes long run yield will be lower...
Super Deduction is massive policy:
IFS point out it will subsidise some otherwise non economic investment in plant and machinery. And mainly bring it forward into the next two years, creating a hangover later...
But why not intangibles, human capital etc...
IFS point out it will subsidise some otherwise non economic investment in plant and machinery. And mainly bring it forward into the next two years, creating a hangover later...
But why not intangibles, human capital etc...
Super deduction effectively a massive corporation tax cut for those investing in plant and machinery, which for 2 years gives one of main benefits of freeports to whole country, takes C-tax take down about 0.5% of GDP to 1.7%..before subsequently goes, then C-tax leap to 3.2% GDP
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