Lord Myners, forner Labour "City Minister" is cross about some companies that, he thinks, pay too little tax. So cross that he has taken leave of his senses. He is joined in this nonsense by another millionaire socialist, Margaret Hodge:
Lord Myners, the former City minister, and Margaret Hodge, the chairman of the PAC – which is carrying out its own inquiry into the issue – said the Government should look into a sales tax as a way of raising extra tax revenue from global companies.
Now, I know I'm not as clever (or rich) as this pair but there are two things about this proposal that strikes me:
1. We already have a sales tax of sorts. It's called VAT.
2. Companies don't pay sales taxes, the customers of those companies (that's you and me folks) pay sales taxes
More to the point companies don't really pay tax at all. OK so they might write out big cheques that land up with the HMRC but the real cost- the actual tax - is paid by the company's employees, customers and shareholders. Always and everywhere, taxes fall on people.
And right now people pay too much tax.
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1 comment:
And I suspect that making foreign-owned companies pay a tax that domestically-owned ones don't might just fall foul of the Single Market.
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