Letter: Business tax plea

Published on Wednesday 15 February 2012 00:00

TOM Miers (Perspective, 14 February 2012) may be a consultant but he seems to have a basic lack of understanding of economics.

I have a degree in economics and run a small business in Edinburgh, but neither is necessary to understand the issues.

Our own company is a real life example of why Tom Miers is wrong and Scotland needs full fiscal autonomy.

The business is just over three years old and, last year, the market we work in was booming. In order to take advantage, we needed to recruit a new member of staff, and this meant we would have to move to a bigger office.

It was only by taking advantage of the 100 per cent business rates relief that we could afford the new member of staff. Business rates are the only taxes directly affecting business that the Scottish Government controls and it was this lever that allowed us to expand.

Our growth has been excellent as the new member of staff has given me the time I need to pursue new business. Our turnover and profit have grown faster this year and the new member of staff has played a significant role.

The total extra tax to be paid by us this year will be many times the saving in business rates.

However, our extra employee’s pay as you earn (PAYE) and National Insurance contributions, our extra VAT payments, higher corporation tax and my own personal tax will all go straight to London. Clearly it would be better if the increased tax take was available directly to the Scottish Government.

I do hope Johann Lamont reads this and stops claiming Alex Salmond wants to cut corporation tax to “line the pockets of businesses”. If corporation tax was cut this year, it would allow us to recruit another member of staff and grow further, reducing the number of unemployed and further increasing the tax take.

In order for this to work, the Scottish Government needs to be in control of 100 per cent of tax and spend so it can continue to balance the books.

It is economic madness for one government to control business training and enterprise and another to control any tax taken from business.

Jonathan Gordon

Gylemuir Road

Edinburgh

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cynicalm

Wednesday, February 15, 2012 at 12:04 PM

A valid view. But #1&2 are typical North British clowns with nothing in their heads. If you wish to indulge in petty bickering, at least recognise that small firms grow into big firms and , if the bribesubsidyrelief works, the amount raised will increase with the success of the small firms.

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Brotyboy

Wednesday, February 15, 2012 at 09:51 AM

#1 If you could make your point without insults it may carry some weight. Your comments are deeply offensive.

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Back To The Future

Wednesday, February 15, 2012 at 07:53 AM

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