I havent really considered the tax rate / tax take relationship. I have focussed on the profits that are taxable.
Labour have said that an increase of 7% CT will generate increase tax based upon current profit levels. Apply the minimum wage increase together with the inflationary effect it will have of the rest of the wageroll then there will be less profits to tax and therefore less tax than predicted
I think part of the CT rate is reversing the proposed cut to 17% by 2020, so in effect the rise will be less.
Seems like a logical step to raising revenue, but large Corps and Multinationals have so many ways of tax avoidance, it will primarily affect UK based SME’s who will also be paying more in wages. Presumably this will reduce the amount of CT HMRC will be able to collect.
Also a low CT rate is supposed to attract investment into the UK after a hard brexit which will probably be affected although the rate even with an increase would still compare favourably with other rates around the world.
. Perhaps the Labour party shouldn’t have studied some econometrics whilst at University (I’m making an assumption they did go to University, although I’d assume Diane Abbott didn’t ).
Newnham College, Cambridge where she took History (and was tutored by Simon Schama). So certainly no dunce.
And, presumably, you meant ‘should have’.
Easy answer to the other employees. Sorry, just following the law, no more money now. It’s not as if everyone above minimum wage is going to leave(were would they go?). If things get worse as has been suggested they’ll be happy to have the job(just like the poor).
As i’ve said, I don’t see everyone getting a rise just because the poorest do(agree they will try). Less profits because of higher wages would just mean they get the tax in a slightly different way. It’s a win win situation.
You obviously have never run a business. This will not happen overnight, but over the course of 12months, the original reason why the accounts junior got a pay rise will be forgotten and the rest of the staff will be comparing what they do and what they get paid to their colleagues - it is human nature.
Most people do not have a problem with what they earn - all the problems start when they find out how much someone else earns (internally or externally)
Yes i have and do(dealing with more employees is the one reason i don’t bother expanding). As i’ve said i understand your point but the other thing about human behaviour is that it’s adaptable, people will get used to it and again, we’re would they go?
People don’t get used to it - they get demotivated, start bitching and pretty soon you have a toxic environment
The Jobs market is more robust that you think - they will leave even for similar money because in their eyes you will have shafted them.
If I was the mid level bro working for CB, I’d try and get an entry level position. Less work, less responsibility, same pay. Win-win!
Another way to consider the wage issue is this
Worker on £7.50 minimum wage get £10
His supervisor who is on £10 is told he isnt getting a rise
Why would the supervisor be bother with the agro of the his job when he could get the same for do the job of the people he manages
Eventually you would have to pay more just to get some one to take on the job
And probably do it themselves! 
I haven’t run my own business, but I have served in middle management in both the public and private sectors. Some people will always find things to moan and bitch about, and in my experience money (as in wages) is usually well down the list!
People do get used to it, like they always do. I’m not saying there won’t be some knock on effects but it certainly won’t be wholesale. If the job market is so robust that everyone between minimum wage and senior management can leave, why is anyone in a minimum wage job?
Eastern Europeans
Unlike IDS who just plain bullshitted on his CV:
According to the BBC, Duncan Smith’s biography on the Conservative Party website and his entry in Who’s Who originally stated that he had studied at the University of Perugia in Italy. A BBC investigation in 2002 found this statement to be untrue.[8] In response to the BBC story, Duncan Smith’s office stated that he had in fact attended the Università per Stranieri, a different institution in Perugia, for a year.[8] He did not complete his course of study, sit exams, or gain any qualifications there. Duncan Smith’s biography, on the Conservative Party website, also stated that he was “educated at Dunchurch College of Management” but his office later confirmed that he did not gain any qualifications there either, that he completed six separate courses lasting a few days each, adding up to about a month in total.[8] Dunchurch was the former staff college for GEC Marconi, for whom Duncan Smith worked in the 1980s.[8]
Best Headline - The Economist
Old McDonnell has a plan. He eyes IOUs
Another way is this.
The supervisor is already on £13 an hour, so he’s very happy that the people he’s supervising are happier, more motivated and easier to manage. He’s used the spare time to observe working practices and realised that a simple change can up productivity and make the company 10% more. The boss is impressed and gives him a pay rise.
How about if the lowest wage in the company was linked as a percentage of the highest?
If the boss wants to keep their wages sensible then they’ll keep staff on the minimum wage.
As soon as they start granting themselves rises or bonuses, all the workers get a percentage of that rise…
Keeping things real!
