Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Santa Rally to S&P 4600+ - 28th Nov 23
Stocks and Silver Have Something to Say about Gold - 28th Nov 23
Can A Stock Market Crash Be Averted... For Now? - 28th Nov 23
Taiwan 2024 Election: Militarization or Development - 28th Nov 23
The Stock Market Trend and the Policy Behind it - 28th Nov 23
Cameco Uranium Stock Hits All-Time High - 28th Nov 23
TSLA, LRCX, TSMC Stock Earnings and Trend Analysis - 26th Nov 23
A Golden Setup: Gold Price Trend Forecast Report - 26th Nov 23
Gold Stocks Winter Seasonal Rally - 26th Nov 23
Elections in South America and Europe Reveal Backlash against Socialism - 26th Nov 23
LMT, JNJ and ASML Stock Earnings and Trend Analysis - 23rd Nov 23
When AI Hallucinates - Top AI Tech Stocks - 23rd Nov 23
Stock Market Ignoring Hawkish Fed - 23rd Nov 23
Stock Market Trend Trajectory into Year End 2023 - 22nd Nov 23
Copper/Gold Ratio: Still Counter-Cyclical - 22nd Nov 23
Learn to Use the FORCE! - How to Really Get Rich - 21st Nov 23
Quad Witching Cracks Stock Market Nuts - 18th Nov 23
Biden Bizarrely Brags About Lower Budget Deficits as US Federal Debt Skyrockets - 18th Nov 23
Silver Price Between a Rock and a Hard Place - 18th Nov 23
The Most Important Chat GPT Tech Reveal of 2023 - 18th Nov 23
AI Tech Stocks Portfolio - 9th Nov 23
Micron MU Stock Trend Analysis - 9th Nov 23
TSMC Stock Trend Analysis - 9th Nov 23
NVIDIA Stock Trend Analysis - 9th Nov 23
The “new ChatGPT” just launched - 9th Nov 23

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Employers NI £2,000 Cut UK Jobs Boost - Budget 2013 Analysis

Economics / UK Tax & Budget Mar 20, 2013 - 05:40 PM GMT

By: Nadeem_Walayat

Economics

George Osborne several years late has eventually got around to targeting the real engines for economic growth and employment in the UK that are small businesses as large multinationals are easily able to evade taxes on profits generated in the UK which they then pull out of the British economy and deposit in tax havens, though the tax haven of Cyprus won't be getting any new deposits any time soon.


The announcement to cut employers National Insurance contributions by £2,000 per year from April 2014 amounts to a direct tax cut for small businesses AND acts as an incentive to set-up in business and employ workers.

The £2,000 cut in NI equates to the amount of Employer NI that would be payable on an employee earning £22,000 per year or a wide range of alternatives all the way to employing many part-time workers on minimum wage as the Chancellor illustrated -

"For the person who's set up their own business, and is thinking about taking on their first employee - a huge barrier will be removed."

"They can hire someone on £22,000, or four people on the minimum wage, and pay no jobs tax."

Another business announcement was to bring forward the cut in corporation tax to 20% from 21% from April 2015, though this will mainly effect larger business as the small business rate is already at 20%. But it will give Britians an competitive edge especially as many other countries such as France are raising corporation tax rates.

Today's budget strategy is clearly for the the Chancellor to start prepping the UK economy for an May 2015 Election boom, therefore expect many more give away's and tax cuts to follow over the coming years with obvious inflationary consequences as the debt mountain continues to expand.

OBR - OBI - Office of Budgetary Incompetence

The OBR or OBI, came forth with another stream of worthless forecasts. I don't have the time today to demonstrate just how incompetent the academic economists at the OBR really are, but the government could save many millions per year by scrapping this worthless department that consumes tax payer funds without ANY productive value, as EVERY forecast has turned out to be WRONG!

Meanwhile George Osborne literally choked on his budget as he tried to suppress the underlying truth of an ever expanding debt mountain as the government prints debt to bridge the unbridgeable gap between that of government spending and revenues that feeds the exponential inflation mega-trend.

The bottom line is this - At least George Osborne is trying to sort out Britain's economic mess, when those that created the mess, Labour's response is to tax businesses, borrow and spend on an unproductive public sector black hole which would BANKRUPT Britain! The big picture remains as I have iterated countless time's which is one an exponential inflation, for protection strategies see my latest ebook The Stocks Stealth Bull Market 2013 and Beyond (FREE DOWNLOAD).

Source : http://www.marketoracle.co.uk/Article39572.html

Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2013 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of four ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series.that can be downloaded for Free.

The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 600 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in