Better understanding of value from co. tax cuts
Media statement Monday, August 16th, 2004
Better understanding of value from company tax cuts gratifying
The growing support for reducing the company tax rate is gratifying and a great step forward, says Alasdair Thompson, chief executive of the Employers & Manufacturers Association (Northern).
"The BRC Marketing & Social Research poll of 503 people just released found 59% in favour of dropping the company tax rate to 30%," Mr Thompson said.
"Only 28% said the present level should be retained.
"It seems most people understand that if a company can retain three per cent more of its profit for re-investment, then everyone will benefit, including government's tax collectors.
"The average citizen probably understands better than our politicians that a reduction in the company tax level reduces the amount of withholding tax paid on a company's profit without greatly affecting the total amount of tax collected on profit and dividends combined."