Comments on: Clegg outlines Liberal Democrat approach to City tax loopholes http://www.libdemvoice.org/clegg-outlines-liberal-democrat-approach-to-city-tax-loopholes-2678.html Our place to talk - an independent website for supporters of the Liberal Democrat party in the UK. Sat, 11 Feb 2012 03:46:54 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Alex Sabine http://www.libdemvoice.org/clegg-outlines-liberal-democrat-approach-to-city-tax-loopholes-2678.html#comment-48443 Alex Sabine Mon, 12 May 2008 23:18:58 +0000 http://www.libdemvoice.org/?p=2678#comment-48443 In theory there is logic in the argument (which I've heard Vince make recently) that income and capital gains should be taxed at the same rate, to prevent unfair anomalies in the tax rates paid by different groups and to prevent the tax system distorting economically rational decision-making. However, we have to recognise the starting point - Brown cut capital gains tax in 1998 (albeit through a complicated system of taper relief, now scrapped of course) and even under Labour's revised plans it is 'only' 18%. It would hardly be welcomed by entrepreneurs if we hiked it back up to 40% just for the sake of the symmetry of the CGT and top income tax rates... On the other hand, the general approach of closing loopholes, removing exemptions and cutting headline rates is the right one in my view. Of course, Osborne has been arguing the same thing, but that doesn't stop it being right. We should be pushing to cut corporation tax aggressively and phase out reliefs. I must admit I'm not sure what the answer is on CGT, though. In theory there is logic in the argument (which I’ve heard Vince make recently) that income and capital gains should be taxed at the same rate, to prevent unfair anomalies in the tax rates paid by different groups and to prevent the tax system distorting economically rational decision-making.

However, we have to recognise the starting point – Brown cut capital gains tax in 1998 (albeit through a complicated system of taper relief, now scrapped of course) and even under Labour’s revised plans it is ‘only’ 18%. It would hardly be welcomed by entrepreneurs if we hiked it back up to 40% just for the sake of the symmetry of the CGT and top income tax rates…

On the other hand, the general approach of closing loopholes, removing exemptions and cutting headline rates is the right one in my view. Of course, Osborne has been arguing the same thing, but that doesn’t stop it being right. We should be pushing to cut corporation tax aggressively and phase out reliefs.

I must admit I’m not sure what the answer is on CGT, though.

]]> By: Paul L http://www.libdemvoice.org/clegg-outlines-liberal-democrat-approach-to-city-tax-loopholes-2678.html#comment-48438 Paul L Mon, 12 May 2008 21:49:32 +0000 http://www.libdemvoice.org/?p=2678#comment-48438 The fact is that Gordon Brown in his former employment as Chancellor presided over the creation of an additional massive volumne of tax legislation, such that we now have roughly three times what existed before he came to office. That complexity is the route of the tax loopholes and avoidance industry. The best proposals that Vince has puit forward are about simplification and repeal - fairer, smarter and more efficient! The fact is that Gordon Brown in his former employment as Chancellor presided over the creation of an additional massive volumne of tax legislation, such that we now have roughly three times what existed before he came to office.

That complexity is the route of the tax loopholes and avoidance industry. The best proposals that Vince has puit forward are about simplification and repeal – fairer, smarter and more efficient!

]]> By: Ross Chmiel http://www.libdemvoice.org/clegg-outlines-liberal-democrat-approach-to-city-tax-loopholes-2678.html#comment-48382 Ross Chmiel Mon, 12 May 2008 11:58:23 +0000 http://www.libdemvoice.org/?p=2678#comment-48382 "Closing loopholes is a war of attrition needing similar dedication as Forth Bridge painting." Of course, after looking at their methods and changing the technology they use the Forth Bridge has finally received it's last coat of paint. Just shows what can be acheived when you let the experts get to work... “Closing loopholes is a war of attrition needing similar dedication as Forth Bridge painting.”

Of course, after looking at their methods and changing the technology they use the Forth Bridge has finally received it’s last coat of paint. Just shows what can be acheived when you let the experts get to work…

]]> By: Joe Otten http://www.libdemvoice.org/clegg-outlines-liberal-democrat-approach-to-city-tax-loopholes-2678.html#comment-48380 Joe Otten Mon, 12 May 2008 11:16:13 +0000 http://www.libdemvoice.org/?p=2678#comment-48380 CP, What's wrong with criticising a system that encourages avoidance? Indeed this need not even imply any criticism of avoidance. It is wrong of the government to give away taxpayers money arbitrarily, but not wrong of anybody to accept it. CP,

What’s wrong with criticising a system that encourages avoidance? Indeed this need not even imply any criticism of avoidance.

It is wrong of the government to give away taxpayers money arbitrarily, but not wrong of anybody to accept it.

]]> By: Chris Paul http://www.libdemvoice.org/clegg-outlines-liberal-democrat-approach-to-city-tax-loopholes-2678.html#comment-48372 Chris Paul Mon, 12 May 2008 10:28:40 +0000 http://www.libdemvoice.org/?p=2678#comment-48372 Oh dear. Tax avoidance? That is completely legal that is. Did he mean evasion? Closing loopholes is a war of attrition needing similar dedication as Forth Bridge painting. Meanwhile we're still waiting for Nick's open book on his expenses and expenditures. Let us hope that there is nothing tantamount to "Tax avoidance" in these. Oh dear. Tax avoidance? That is completely legal that is. Did he mean evasion?

Closing loopholes is a war of attrition needing similar dedication as Forth Bridge painting.

Meanwhile we’re still waiting for Nick’s open book on his expenses and expenditures. Let us hope that there is nothing tantamount to “Tax avoidance” in these.

]]> By: simon http://www.libdemvoice.org/clegg-outlines-liberal-democrat-approach-to-city-tax-loopholes-2678.html#comment-48361 simon Mon, 12 May 2008 09:19:57 +0000 http://www.libdemvoice.org/?p=2678#comment-48361 'Who wants to be a millionnaire?' Nick Clegg! What? He IS a millionnaire! Fancy! ‘Who wants to be a millionnaire?’ Nick Clegg! What? He IS a millionnaire! Fancy!

]]> By: Letters From A Tory http://www.libdemvoice.org/clegg-outlines-liberal-democrat-approach-to-city-tax-loopholes-2678.html#comment-48359 Letters From A Tory Mon, 12 May 2008 09:01:34 +0000 http://www.libdemvoice.org/?p=2678#comment-48359 I doubt the City will be too happy about this, seeing as Brown and Darling are already scaring off major companies such as Yahoo and WPP. Having said that, it would be interesting to see what any final proposals look like. http://lettersfromatory.wordpress.com I doubt the City will be too happy about this, seeing as Brown and Darling are already scaring off major companies such as Yahoo and WPP.

Having said that, it would be interesting to see what any final proposals look like.

http://lettersfromatory.wordpress.com

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