Business LOWER TAXES! IT'S NECESSARY


by ALison White - Date: 2007-03-29 - Word Count: 488 Share This!

The United Kingdom is confronted with a delicate financial problem: taxes are too high, unusually high for the strength and the prestige of the economy, and also for the countries ambitions. Although Britain has a rampant economy at the moment and is one of the EU leading exporters, its position in what regards taxation policies has still to be improved.

A recent study revealed by the CBI that the UK lies in the tenth position among the 15 old EU members if speaking of taxation, for it hasn't changed its standards in this domain since 2000, when it lay in the third place in this hierarchy. The state's position has become so disappointing, that its general business taxation standards, currently at 10.2%, represent a higher figure than that of four out of five of the UK's main trading partners in the EU.

The growing taxes are nowadays a threat to the internal economy, since this can make firms find spots overseas, this leading to a higher degree of unemployment. This possible phenomenon has al the chances to trigger a deficit in public finances.

The leading figures in the area of Business overall the country have set to ask Chancellor Gordon Brown to put an end to public spending growth and reduce borrowing to the inside and outside with this month's budget. This way, the reduction of business taxes will become possible.

Numbers speak best when it comes to understanding the proportions of the needed reduction in taxation. The official plan was to grow public spending to 2.7% in the 2007-2008 financial year and 1.9% in the coming years. Yet the CBI wishes a 2.3% growth in the first case and a mere1.6% further. These fractions of percentages may weigh a lot!

However the organisation greeted Brown's announcement of 1.9% pay rises of workers in the public sector.

The CBI has plans slightly different than those of the Treasury. It wants a £9 billion reduction in the public spending and a 37.6% taxation level for 2010-2011, yet the Treasury has a 38.1% figure in mind.

All in the economy are now aware that the public sector and borrowing are two sectors that have received too much attention in the last few years; there has been too much generosity here. The true point is to get the economy going overall and to fight all the elements which slow her down.

Studies unveil sad results: 22% of companies have opened activities abroad and 17% more are looking forward to doing so. This is a serious alarm since if overgrowth of taxes itself has minor effects on the national job system moving abroad may lead to a job loss crisis. The situation seems to be heading towards a good change though as the chancellors decision to lower the public sector's spending is on the run.

It's all about adapting to EU standards and being on the top of the European economy!


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