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If the UK set its corporation tax level down to match Switzerland's, then Switzerland would just lower theirs. Eventually you'd have a whole planet that doesn't
by drcongo 14y ago
If the UK set its corporation tax level down to match Switzerland's, then Switzerland would just lower theirs. Eventually you'd have a whole planet that doesn't require huge multinational corporations to pay any tax at all. How is this a good thing?
- lvh 14y agoYes, when has free market competition ever lead to good things? Furthermore, I think you are making the unwarranted assumption that it's a race to zero, as opposed to some balance point greater than zero where the companies actually have some reason to pay that tax. If we're all paying taxes for the common good, then presumably there's some common good in it for them, too? Or are corporations only things that we extract money from?
- drcongo 14y agoIf corporations are paying extremely low tax, then the shortfall in government finances has to be made up elsewhere. It doesn't matter whether it's a race to zero or not, if government is not earning on corporation tax then it comes down to personal taxes on the people of that country. How is it fair for a multi-billion pound company to pay near-zero tax, and the shortfall to be made up by individuals? All this will do is increase the gap between the richest and the poorest people, and have a negative effect on social mobility. Frankly, I don't want to live in your future.