To celebrate the 40th Anniversary of the founding of the Centre for Policy Studies the Centre’s Chairman, Lord Saatchi, has authored a report demanding that, rather than incremental decreases, the Conservative party pledge to scrap Corporation Tax altogether for businesses with under 50 employees at the next General Election.
In an article for The Telegraph Lord Saatchi issues a “call to arms” to Tories to address the “huge imbalance of power between the individual customer and the giant corporation.”
The former Conservative Party Chairman also calls for the abolition of Capital Gains Tax for investors in small businesses. The report claims these two measures together would “abolish Corporation Tax for 90 per cent of UK companies, reduce the deficit faster than predicted by the Office for Budget Responsibility, expand employment faster than it predicts, increase competition, challenge cartel capitalism and let millions of people grow tall.”
The UK’s small businesses together pay around £8 billion in Corporation Tax, or around 9% of total receipts. At the time of writing it is unclear how a 9% reduction in tax receipts would help shrink the deficit.
According to Lord Saatchi, the money saved by small businesses would be inwardly invested in growth, resulting in more profitable, expanding enterprises and growing employment.
“The nation as a whole will benefit from a change in culture as big as Right to Buy was in the Eighties; there will be greater economic growth, more competitive marketplaces, and more freedom and independence from Big Government and Big Companies.”
Photo by Josep Ma Rosell