Meanwhile the EU is moving towards harmonisation of business taxes, forcing Tax Pirate economies like the Irish to toe the line, and making the policy that the Nationalists want in a devolved UK, i.e.cutting business taxes in isolation, impossible to implement if they ever achieved their dream of "independent in Europe".
So it's already a dog's breakfast, a fact emphasised by John Swinney's incoherence when trying to defend it on Newsnicht.
Nevertheless the bold John yesterday issued this press release.....and now he seems to have swallowed the whole right-wing Laffer Curve nonsense... y'know the bit where Tea Party Republicans claim that lowering taxes always increases government revenues...
"There is clear evidence from around the world of the benefits from lowering burdens on business....Lower corporation tax is a vital source of competitive advantage in an integrated global economy, helping to attract new businesses and highly-skilled jobs. ......Corporation Tax has a significant influence on increasing the size, competitive strength, productivity and ambition of Scotland's business base. Lower rates of corporation tax boost incentives to invest in human and physical capital, and research and development, increasing firms' profitability and the ability to compete.....cutting the headline tax rate would not necessarily reduce tax receipts."
Proponents of the Laffer Curve are always willing to admit that it is counter-intuitive (translation "illogical") to believe that cutting taxes increases the amount of tax revenues gathered, but even they will only claim that it works if a country is "over taxed" in the first place. Say what you want about the UK, but it's not a high tax country for business in the first place. Corporation Tax is only around 26% and there are plans to reduce it, so the theoretical gain from the Laffer analysis wouldn't happen here (even if you believed in Laffer, which most economists don't).
Frankly, what a so-called "left wing" party like the SNP pretends to be is doing calling up neo-liberal mumbo jumbo to support an already discredited policy proposal is beyond logic and consistency. But then logic and consistency never were a Nationalist strong points.
Proponents of the Laffer Curve are always willing to admit that it is counter-intuitive (translation "illogical") to believe that cutting taxes increases the amount of tax revenues gathered, but even they will only claim that it works if a country is "over taxed" in the first place. Say what you want about the UK, but it's not a high tax country for business in the first place. Corporation Tax is only around 26% and there are plans to reduce it, so the theoretical gain from the Laffer analysis wouldn't happen here (even if you believed in Laffer, which most economists don't).
Frankly, what a so-called "left wing" party like the SNP pretends to be is doing calling up neo-liberal mumbo jumbo to support an already discredited policy proposal is beyond logic and consistency. But then logic and consistency never were a Nationalist strong points.
