Reprinted from an email received from Sumofus.
George Osborne is using Brexit as an excuse to turn Britain into a tax haven.
The chancellor has said he plans to slash corporation tax from 20 to less than 15%, giving the UK the lowest corporation tax of any major economy.
While it’s great news for multinational corporations, it’s terrible news for the rest of us. We’ll have to pay more income tax to compensate for the drop in corporation tax, and we’ll see more public services scrapped to pay for the corporate tax break.
But the pro-corporate lobby is already putting pressure on Osborne to go even further, calling on him to “be bold and cut the rate to 10% as soon as possible”. We urgently need to counter that pressure, and tell Osborne not to cut corporation tax.
The UK’s 20% corporation tax rate is already one of the lowest amongst developed economies, prompting the IMF to define us as “an offshore jurisdiction” back in 2007. Now Osborne wants to make the country a fully-fledged tax haven — one that offers the corporate and financial elite low tax rates while ordinary workers pay the price.
The price we’ll pay won’t just take the form of higher income tax for workers and further cuts to our public services, many of which are already at the point of collapse. We’ll also see a rise in inequality — and, according to some studies, the entire UK economy could suffer from the lowering of tax rates for business.
In his desperation to show corporations that Britain is “open for business” after Brexit, Osborne is taking the country on a dangerous race to the bottom — and the only people who stand to gain from it are the corporate elites.
As a community, we’ve stood up to challenge the corporate takeover of our democracy — and our countryhttp://www.afairersociety.uk/wp-admin/edit.php — before. More than three million of us came together to stop TTIP. Now we urgently need to stand up again, and stop Osborne from turning Britain into a tax haven.
Thanks for all that you do,
Martin, Sondhya, Kat, Fatah, Hanna and the team at SumOfUs