Policy Research in Macroeconomics

The strange results of cutting corporation tax

Share on facebook
Share on twitter
Share on linkedin

If you want a good example of absurd economic claims and false logic in the lead-up to the UK General Election, one need look no further than the letter to the Daily Telegraph by “senior business figures” in support of the Conservative Party, published (aptly) on 1st April.  In it, the “senior business figures” involved argue the following:

David Cameron and George Osborne’s flagship policy of progressively lowering Corporation Tax to 20% has been very important in showing the UK is open for business. It has been a key part of their economic plan.

The result is that Britain grew faster than any other major economy last year and businesses like ours have created over 1.85m new jobs.

Yes, they claim that the whole increase in employment since 2010 – is the “result” of the “flagship policy” of lowering Corporation Tax!  

Inspired by the boldness and breadth of their logic, I wrote my own letter, on behalf of PRIME, to the Financial Times, which was kind enough to publish it last Saturday.  Here it is:

Share on facebook
Share on twitter
Share on linkedin

Leave a Reply

Your email address will not be published.

This website collects cookies and analytic data. To use our website you must consent.
For more information read our Privacy Policy.