Comments for Chapter 11 at http://adamsmith.org , comment 1 to 3 out of 3 comments http://adamsmith.org Sat, 22 Nov 2008 19:06:57 +0100 FeedCreator 1.7.3 http://adamsmith.org/blog/government/chapter-11-200807171715/#comment-605 Companies don’t really pay Employers’ NIC. Employees do, through lower wages. Apart from the fact that some people are ignorant of the fact that employers are prevented from stating employees’ true wages (ie, gross wages plus employer’s NICs) thereby hiding what is, effectively, income tax – I don’t see any reason why it is anything other than just that – a hidden income tax on ‘earned’ income. But anyway – shouldn’t loss-making companies pay tax anyway? Any justification for taxing companies would surely rest on pricing for the impact they have on public goods such as infrastructure, regulation and the legal system. Wouldn’t sales be a much better reflection of that likely impact rather than profits, which is merely a measure of how efficient they are? - Rory Meakin Thu, 17 Jul 2008 15:32:36 +0100 http://adamsmith.org/blog/government/chapter-11-200807171715/#comment-603 What The Englishman says. Also, please note that when HMRC are chasing insolvent companies, it is usually PAYE or VAT. The Employer's NIC element of PAYE and VAT are The Worst Taxes because even loss making companies have to pay them - in many cases, businesses would be profitable in the absence of these taxes. Corporation tax (The Second Least Bad Tax) obviously does not have this effect as only profitable companies have to pay it. - Mark Wadsworth Thu, 17 Jul 2008 11:27:26 +0100 http://adamsmith.org/blog/government/chapter-11-200807171715/#comment-599 HMRC does not have preferential status in the distribution of the assets of an insolvent estate. The former Departments of Customs & Excise and Inland Revenue both lost preferential status on 15 September 2003 under the provisions of the Enterprise Act 2002 But that is not to say they aren't keener to wind up businesses than local private traders who may be a bit more understanding. - The Englishman Thu, 17 Jul 2008 07:23:02 +0100