Comments on: Could a business education tax mean an end to tuition fees?

By: Tim Worstall

Tim Worstall — Fri, 05 Mar 2010 11:59:05 +0000

“recommends raising the level of corporation tax in the UK to the G7 countries’ average.”

There’s a simple error here I’m afraid.

The UK’s level of business taxation is already above the G7′s average.

You see, you cannot measure business taxation simply by what the marginal rate is. There are too many allowances (depreciation, R&D, training, huge numbers of them) and the tax base itself is different in different countries.

To actually measure the level (rather than the marginal rate) the best number to look at is the percentage of GDP raised in corporate profits taxation. For the G7 this is 3.5%. For the UK this is 4%.

So you’re actually arguing for a 12.5% cut in business taxation: a good idea, yes, but not one that provides any money to pay for your wages really.

Or it could be that I’ve entirely misunderstood you. Perhaps you believe that we’re on the wrong side of the Laffer Curve and that cutting marginal tax rates will increase revenues collected?

By: Simon Watson

Simon Watson — Thu, 04 Mar 2010 11:40:14 +0000

Could / should a 'business education tax' solve the university funding gap? http://tinyurl.com/ybxrdnz

By: Simon Watson

Simon Watson — Thu, 04 Mar 2010 11:39:21 +0000

Could / should a business eductaion tax solve university funding issue? http://tinyurl.com/ybxrdnz

By: Noya Khobor » Blog Archive » Could a business education tax mean an end to tuition fees? | Left …

Wed, 03 Mar 2010 16:38:24 +0000

[...] Go here to see the original: Could a business education tax mean an end to tuition fees? | Left … [...]

By: Adam Bell

Adam Bell — Wed, 03 Mar 2010 14:48:39 +0000

I await the first ‘Businesses forced to pay for indolent to do Media Studies’ headline with relish.

By: Ben

Ben — Wed, 03 Mar 2010 14:39:36 +0000

Seems quite sensible to me. Extra cash raised from the big profit generating companies, but done at a level so they don’t plead poverty and run off to other countries. And business pays its way for the graduate pool it needs now and will need even more so in the future. Surely better that uber rich companies have a little less and future generations are saddled with debt or forced to make choices on likelihood of future financial problems. We want the brightest not just the richest at university surely?

By: Could a business education tax mean an end to tuition fees? | Left … | Income Tax Portal

Wed, 03 Mar 2010 14:28:55 +0000

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By: Ewan Watt

Ewan Watt — Wed, 03 Mar 2010 13:24:21 +0000

RT @mjhsinclair: This, from @leftfootfwd, is stupid on so many levels I'm not sure I can stand rebutting it: http://bit.ly/cGOx8l

By: Matthew Knowles

Matthew Knowles — Wed, 03 Mar 2010 13:10:19 +0000

RT @mjhsinclair: This, from @leftfootfwd, is stupid on so many levels I'm not sure I can stand rebutting it: http://bit.ly/cGOx8l

By: James Doran

James Doran — Wed, 03 Mar 2010 13:03:29 +0000

"Could a business education tax mean an end to tuition fees?" http://bit.ly/a2WsMr