Essay Lower Corporate Tax

2264 WordsMay 14, 201310 Pages
A Case for lower Corporate Tax Submitted by Student -201204997 on 11th of march 2013 Executive Summary •Policy Makers in the United Kingdom may as well take notice and acknowledge that lower corporate tax can give essential profits to business competiveness without fundamentally hurting the medium-term budget viewpoint. Several countries lately have reduced or plan to reduce their corporate tax rates in order to stimulate investment, create jobs and promote faster economic growth. This includes the Ireland where the rate of Corporation Tax has been kept at 12%.Recently published report of Northern Ireland (NI) Economic Strategy, identified lowering of corporate tax as the single measure that might have the most…show more content…
Studies by Economist Lee and Gordon(2004) found viewed the connection between corporate tax rates and economic growth for 70 nations over a 27-year period they discovered that statutory corporate charge rates are fundamentally adversely related with cross-sectional distinctions in normal economic development rates and that reducing the corporate duty rate by 10 percent can deliver a additional growth rate of 1.1% Studies such as these provide strong evidence that lower corporate taxes do lead to long term economic growth and by having high rates we retard the nation growth potential. Competiveness The Canadian legislature has set an unequivocal objective of having a lowest corporate tax in the Group of Seven (G7) nations on January 1st, Canada brought down its corporate tax rate from 18 percent to 16.5 percent. the rate will eventually decrease to 15 percent. The Japanese administration also affirmed corporate tax deduction by 5 percent with a specific end goal to increase local investment and create jobs through improving Japanese firms worldwide competiveness and improving business environment. Lee and Gordon (2004) argue that the elevated sticker value of the nation high corporate charge rate not just makes the its economy less competitive all around, but also it makes its business organizations less aggressive competitive they argue lower corporate tax rates

More about Essay Lower Corporate Tax

Open Document