UK Video Game Tax Cuts Sabotaged? 123
ninjacheeseburger writes "Develop recently published an article claiming that the UK government was put under pressure by one of the biggest game companies in the world to cancel planned tax breaks for video game developers. This company had apparently viewed game tax relief as a measure that would have given the UK an unfair advantage over other nations."
Re:Doesn't say who the game company is (Score:3, Insightful)
disadvantage..? (Score:4, Insightful)
really?.. they wouldnt be the first country to put tax breaks in for creative sectors.. seems like the Other countries already have the unfair advantage over the UK.. this would be more like leveling the field.
Huh? (Score:2, Insightful)
What genius in the newly-minted government thought, "Oh dear, we might be giving an unfair advantage to a premier entertainment industry sector of the 21st century, we mustn't have that in little old England, what?"
And here I was thinking only the US and Australia had truly effective lobbyists who could convince the government to act in their interests instead of the country's.
Re:Doesn't say who the game company is (Score:4, Insightful)
Why tax cuts for the video game industry? (Score:4, Insightful)
In that case, the video game industry should cut costs and make games people want to buy, yes?
Nintendo, for example, seems to be doing just fine. Maybe their strategy of expanding the market is the right way to do things, rather than expecting handouts from the government?
Re:Game companies should come to India instead (Score:5, Insightful)
The UK is good for exporting haggis, but India is the IT bread-basket of the West.
You're either a very good troll, or an extremely obnoxious prick. Actually, it could be a bit of both.
Re:We did give them a tax cut! (Score:5, Insightful)
Re:Well we always knew (Score:4, Insightful)
Yes, because we all know objectively that [your chosen political party here] is perfect and [any other political party] are immoral scum, and would plunge the earth into darkness, illiteracy and overabundance of [insert bad thing here] if they regained power.
Am I doing it right? Perhaps not polarised enough, and I need to detach from reality a little more?
Re:Wait... (Score:3, Insightful)
over here in the US they're telling us that increasing taxes is an economic stimulus and will create jobs, stimulate investment, and grow the economy.
Well, in the US that could be true if they continue to use taxes fund international wars, and employ everyone in the creation of bigger and better weapons.
Videogames on the UK. (Score:3, Insightful)
Teenages are a dificult people because need to explore how fit on the world. Countrys are somewhat like that, because has to fit in the world. Lets look at the japanese, for a success story, from the medieval ages to industrial ones, really quickly. A country with not natural resources, but a powerfull industry. Other countrys rich in resources are poor. Countrys like Irak are poor in a way, even with the oil.
The UK not invented the videogames, but is a area where the UK culture can kick in, and be amazing. So UK is usefull to the world, and videogames are part of it. So videogames are more important for UK that what we see nowdays.
Of course, the Americans will build giganteous industries, and will bully everyone outside of the area. Maybe you have to fight that, if you want something to do in life. Leting the americans suck another industry away for thenselves, is bad for USA, is bad for UK and is bad for the world. "Blockbusters" could be a good industrial thing, but is poor enteirnament. Good production values are a nice thing to have, but what about soul? what about deep? what about FUN?. Blockbuster games are (in a way) like Soviet era buildings: devoid of life.
So UK, please, fight this battle, preserve your cultural significance here in the videogame world.
Re:Huh? (Score:4, Insightful)
Re:Doesn't say who the game company is (Score:2, Insightful)
The only reason to put a stop to this would be due to lobbying by a company (companies) that may be adversely effected by this
There is another alternative, and one that means the tin-foil hat can be left on its hook. Leaving in a tax break for an already profitable part of an economy would have left them open to critisism (and accusations, ironically, of underhand lobbying from the games industry), so what they've done instead is to distribute the breaks around a number of different parts of the small business economy; think of it as spreading the risk.
Thus, we have the lowering of corporation tax; potential (although I think currently undefined) breaks for companies setting up outside London and the South East; and, savings on National Insurance payments for new small businesses. VAT, which admittedly may hit the business-to-consumer games industry more than business-to-business industries, will still only add 85p to a £40 game.
Personally, I don't think the reason was lobbying. It was the realisation that they could actually use the Budget to help the entire small business economy - of which the video games companies are just a part.
And this is why democracy sucks (Score:3, Insightful)
The UK is near bankrupt, it is involved in two wars, three if you count Ireland were the peace process is measured by the number of people killed. It is production is in shambles and the economic sector in ruins. It can't pay for its welfare or its healthcare. It politics are divived up with the conservatives now having to rule with the liberals and all this guy thinks of is to get kids playing soccer so the national team has a chance. Oh yeah, that is worth paying taxes for.
Amazing. Bread and circusses, it still seems to work.
Re:And the other half of the story... (Score:2, Insightful)
The math is pretty easy in a recession with high unemployment: any additional tax reduces consumption. It isn't like everyone is walking around with spare cash. When times are booming, not so much.
Seriously? (Score:3, Insightful)
Re:Huh? (Score:2, Insightful)
Do you think the UK treasury can run numbers? You're borrowing £500,000,000 per day for goodness sake!
Re:And the other half of the story... (Score:4, Insightful)
Right, but whether this is worthwhile depends on by how much.
That's why one must, as the parent said, calculate the price elasticity of demand to determine whether a tax will in practice increase or reduce revenue.