Given that we are all economically literate around here we know that corporations do not bear the economic burden of corporation tax. It's just a convenient fiction that they do, the reality is that the tax hits the wallets of investors in the company being taxed and all the workers in the economy which has the tax. Similarly, given that we are all economically literate, we know that capital income should be taxed rather more lightly than labour income, if it should be taxed at all.
So, this seems like a very good idea:
Britain could slash corporation tax to 10 percent if the European Union refuses to agree a post-Brexit free trade deal or blocks UK-based banks from accessing its market, the Sunday Times reported, citing an unidentified source.
The newspaper said the idea of halving the headline rate from 20 percent had been put forward by Prime Minister Theresa May's advisers amid growing fears other EU member states will take a hard line in Brexit negotiations.
The tax cut would be used to try and persuade the EU to grant "passporting" rights for financial services firms to continue operating across the EU, the newspaper said, in a sign of the likely animosity of the upcoming divorce talks.
But why is this being kept in reserve just in case we want to be dastardly to the French? Or the threat of not doing is being used as a persuasion for the Germans to maintain their own access to our fine banking services?
This is simply a good idea in and of itself and one we should implement right away.