Mar 28 2007
The attack on small business
A few budgets ago Gordon Brown was keen to encourage people to incorporate their business activities as small companies. He set out a very generous tax regime for them to do so.
Since then he has been whittling away the tax advantages. This year he announced most of the next Chancellor’s budget for 2008, and at the same time pushed small business tax up to 22% compared to the 20% standard rate for sole traders. It’s typical of this government to encourage people to do things, then to punish them when they do!
??When David Cameron asked the Prime Minister about this today he seemed unable to answer even the most basic points about this. Why are small businesses going to have to pay more tax, when the government has at last realised business needs lower rates at the bigger end of the spectrum?
Why was it a good idea idea to incorporate a few years ago, and why do people now have to be hit for doing so?
Why doesn’t the government understand that lower tax rates procude more businesses, which in turn produce more tax revenue?
John Redwood has been the Member of Parliament for Wokingham since 1987. First attending Kent College, Canterbury, he graduated from Magdalen College...
