UK government expenses row
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Ash



Joined: 22 May 2007
Location: Al-Ard

PostPosted: Tue May 26, 2009 7:37 pm    Post subject: Reply with quote

faceless wrote:
I've been thinking about the people who profit a lot from company expenses in private contracts. They say that this is ok because they're not taking money from the public purse. Thing is though, if the company wasn't dishing out all that expense then that money would be counted as part of the company's profit, meaning that it would be taxed at the normal corporation tax level.

So they are taking money from the public purse. I wonder how many of the ones who are so up in arms about this whole thing would be prepared to give up their perks?

Not directly related to the title topic, but I i thought I should share my perspective as an economics student:
It will not be possible to monitor those things and then propose tax on those expenses since the management and inspection of those costs will probably be pretty high. Another thing to add here is that almost every government has huge amount of waste in various forms (corruption, mis-allocation, wars, moral hazards of many forms, etc). So no matter how much a government gets as tax revenue it will never be able to solve the problem.
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faceless
admin


Joined: 25 Apr 2006

PostPosted: Tue May 26, 2009 7:40 pm    Post subject: Reply with quote

I'm not saying that the expenses should be taxed - I think some kind of limit on the amount that a company can set aside for expenses might work though.
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Ash



Joined: 22 May 2007
Location: Al-Ard

PostPosted: Tue May 26, 2009 7:43 pm    Post subject: Reply with quote

faceless wrote:
I'm not saying that the expenses should be taxed - I think some kind of limit on the amount that a company can set aside for expenses might work though.
sorry face, my brain is bubbling with motivation after seeing a lecture by Prof. P Collier: http://www.ted.com/index.php/talks/paul_collier_shares_4_ways_to_help_the_bottom_billion.html
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