Higher business taxes may cripple small firms.Byline: Karen Dent HUNDREDS of thousands of jobs would go if small businesses are forced to pay higher rates of tax, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the findings of a specially-commissioned study. Research for the Federation of Small Businesses (FSB (FrontSide Bus) See system bus. FSB - front side bus ) said a greater tax burden on small firms - which make up 99% of the country's businesses - would also cost the economy billions of pounds. Carried out by the Centre for Economics and Business Research (CEBR CEBR Centre of Economics and Business Research (Denmark) CEBR Centre for Economics and Business Research Ltd (London, UK) CEBR Cedar Breaks National Monument (US National Park Service) ), the report said that raising the rate of corporation tax from 21% to 26% - the result of equalising the tax rate between big and small business - would cost around 100,000 jobs from the small business sector and reduce economic output by pounds 4.3bn. At the same time, it would only cut public sector deficit by pounds 1.6bn over 10 years. Employers' National Insurance Contributions (NICs) are also due to rise in April 2011 and CEBR said that a 1p rise would cost around 57,000 jobs in the SME (1) (Small and Medium-sized Enterprise) See SMB. (2) (Subject Matter Expert) An individual who is well-versed in the policies and procedures of a particular department or division. sector. This scale of job losses would cost the Government around pounds 900m in jobseekers' allowance and other benefit payments.. The FSB is calling on the Government to freeze NICs ahead of Chancellor Alistair Darling's Pre-Budget Report In the United Kingdom, the Pre-Budget Report (PBR) is one of the two economic forecasts that HM Treasury is required to deliver to Parliament each year, the other being the annual Budget. (PBR PBR Pre-Budget Report PBR Pabst Blue Ribbon PBR Policy Based Routing PBR Payment by Results (UK hospital funding) PBR Permit by Rule PBR Plant Breeder's Rights PBR Performance Based Ratemaking PBR Partition Boot Record ). It said that many small firms are already operating on very small margins and any increase in costs may push some over the edge. CEBR economist Ben Read said: "Our report shows that the potential benefits to the public purse PURSE. In Turkey the sum of five hundred dollars is called a purse. Merch. Dict. h.t. from increasing taxes on small business are at best minimal, and in the long term may actually damage public finances. "Moreover, almost all empirical evidence shows that increasing business taxation provides disincentives for small businesses to engage in activities that they have particular strengths in: entrepreneurial activity, investment and innovation, and employment. "In short, taxing economically beneficial activity is inconsistent with encouraging a strong recovery, and would damage growth and employment prospects.'' FSB North East regional chairman, Colin Stratton, said: "The FSB is calling for a freeze in employers' National Insurance contributions as the most constructive way of tackling the challenge of rising unemployment and continuing to put small businesses in the best possible position to draw the economy out of recession. "We need to see the Government take on these practical proposals at a time when the country faces such financially testing times." CAPTION(S): TAX COSTS tax costs n. a motion to contest a claim for court costs submitted by a prevailing party in a lawsuit. It is called a "Motion to Tax Costs" and asks the judge to deny or reduce claimed costs. FSB chairman Colin Stratton at the 2008 conference. |
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