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What About Lowering Taxes Doesn't Britain Get?


Wednesday, April 14th, 2010

Of all the economic problems Britain is facing, the one they have direct control over: taxes, is one they're evidently unwilling to take significant measures on as far as lowering them. Evidently something that simple isn't in the works, and it's increasingly apparent if the British government doesn't lower taxes, they will continue to have businesses leave the country, which obviously doesn't bring taxes to the government coffers.

Even WPP and Sir Martin Sorrell recently stated they would bring back their business to the country if there was a commitment from the political parties to keep the taxes in the country low and start to be more business-friendly.

Incredibly, WPP and Sorrell were attacked for leaving Britain to cut the enormous amount of taxes they had to pay in order to do business in the country. If Britain refuses to cut back on their socialist programs and slash the size of government, this will continue to be the trend going forward, and who will be left to tax after the productive leave?

Much of the reason for WPP leaving the country was because of the taxation on profits made overseas. Sorrell said if that was dropped they would consider moving back to Britain to do business.

The bizarre and illogical idea of keeping the tax burden in place while major companies leave the country is amazing, as the largest private company in Britain, Ineos, has confirmed they're leaving the UK, which they say should save them £100 million annually.

Clueless TUC General secretary Brendan Barber said this:

"Businesses do nothing for their standing with the public when they use strong-arm tactics to escape their fair share of tax, especially when this means the burden of paying down the deficit will fall more heavily on ordinary taxpayers and smaller businesses.

"The new government, should call the bluff of business and press hard for international action against tax avoidance and evasion so this sort of behavior is consigned to history."

Again, these types of politicians, which aren't solely dwelling in Britain, fail to think in terms of the one thing that will really deal with the fiscal problems, and that is to downsize government and have regulations for government in place which won't allow them to create the types of deficits Barber implies big business should pay.

Business doesn't exist for the purpose of paying down outrageous and out of control spending habits of big government, they exist to create great products and services for customers, which creates jobs which the workers should be able to keep the bulk of their money, not throw at politicians who have been out of control with their spending for decades.

For Barber to use terms like tax avoidance in his stupid comments, only underscores why Britain needs new leadership and the commitment to lowering taxes and the big government that feeds of those taxes.



Article by Gary B

The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com



Tags: british taxes , business tax , sir martin sorrell , wpp