Wednesday 26 March 2003

Cut taxes now

There seems to be little doubt that business rates (property taxes) are higher in Scotland than in England. Clearly this has an adverse impact on business formation and growth in Scotland. The government here has introduced a slanting of the business rates away from small companies to medium and large ones. Spokesmen for larger companies aren't happy:
Duncan Tannahill, chief executive of Glasgow Chamber of Commerce, said: "Bigger firms are being punished twice - by losing uniform business rates and by subsidising small firms. We support the relief scheme but think it should be paid by the executive, not by other businesses."
When Mr Tannahill says that the relief scheme should be paid for by "the executive" he seems to think that governments have money of their own. They don't. He's really calling for the rest of the population to pay more tax. Business leaders should be calling for a reduction in the size of government, not for switching taxation from companies to individuals.

There is more here on this issue.