Is now really the best time to cut corporation tax?

Is now really the best time to cut corporation tax?

Kevin Farnsworth has written an article for the Guardian’s Comment is free strand, on the tensions between corporate and social welfare exposed in this week’s budget.

Wednesday’s budget in some ways typifies the tensions between corporate welfare and social welfare. Tax credits are a good example of a provision that falls into the categories of both corporate welfare (in that they act as a wage subsidy for employers) but also social welfare (in that they provide essential support to low-income families).

“Our current 20% tax rate is the lowest of the G7 countries. The money would be better spent on preserving public services that benefit citizens AND businesses.

Those who face the biggest barriers to work – the sick and disabled, and those with more than two children – exactly the types of families for whom wage supplements were originally devised, are set to be the biggest losers out of the changes.

Surely we cannot afford to lose this revenue, equivalent to £2.9bn according to theOffice for Budget Responsibility or, if we take into account growth and inflation, up to £27.8bn according to Richard Murphy – money that could have been used to protect the range of public services upon which citizens AND private businesses both depend.”

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