(thinly veiled I have a friend post)
MY FRIEND … who is a card carrying Tory with some fairly questionable views about things was yesterday banging on about reducing corporation tax, making businesses competitive and more profitable.
Now, my argument was that the profit in this case very rarely finds its way to a useful place, i.e… more jobs, higher living standards etc but rather into shareholders and senior management paypackets.
However, what would stop the following:
Reduce corporation tax by x% ….
Any tax saved is legislated to be used for job creation (decreasing welfare bill), lowest wage increases (decreasing need for state to prop up low wage economy) or large infrastructure projects like moving to 4g (decreasing the need for backdoor government subsidies )
They choice would be
a) pay the higher tax if you think the government can spend it better than your company can
b) pay the lower rate and spend the difference in a way that benefits the company and the country.
Now, I realise this would take some serious good will and policing, but surely there are other numerous flaws to this that I’ve been too stupid to figure out.