AstraZeneca Dumps Britain
Those misguided among us that advocate heavily taxing companies on what they describe as “obscene profits” might care to reflect on this report:-
AstraZeneca has decided to cancel a £300,000,000.manufacturing plant, scheduled for NW England and build it in Ireland instead; the reason given being that the company taxation in Ireland is more favourable to business. The loss of the capital investment is not the only penalty as AstraZeneca is one of the biggest spenders on R & D in the UK, spending over £2,000,000,000 a year.
Therefore not only are we losing the corporation tax but also the PAYE of the jobs the investment would create and the VAT that the employees would pay when spending their income.
During the Tory/Lib Dem coalition, George Osbourne cut CT and the resulting revenues actually increased, so who, in their right mind would advocate raising CT from 20% to 25% only a barmy Labour Opposition and a weak Tory Chancellor who is under electoral pressure.
Consider a simplistic basic model based on £1,000’s of company profit.
1) With tax @20%, the revenue is £200.
2) With tax @ 25%, the revenue is £250, up £50.
3) With tax at 18%, the revenue is £180, down £20. But gain one new investor we get £180 x2 =£360, (£340 net) an increase of £160 (£140 net) on base of 20%.
I suggest that only an uninformed fool would wish to pursue such a policy.
AstraZeneca has decided to cancel a £300,000,000.manufacturing plant, scheduled for NW England and build it in Ireland instead; the reason given being that the company taxation in Ireland is more favourable to business. The loss of the capital investment is not the only penalty as AstraZeneca is one of the biggest spenders on R & D in the UK, spending over £2,000,000,000 a year.
Therefore not only are we losing the corporation tax but also the PAYE of the jobs the investment would create and the VAT that the employees would pay when spending their income.
During the Tory/Lib Dem coalition, George Osbourne cut CT and the resulting revenues actually increased, so who, in their right mind would advocate raising CT from 20% to 25% only a barmy Labour Opposition and a weak Tory Chancellor who is under electoral pressure.
Consider a simplistic basic model based on £1,000’s of company profit.
1) With tax @20%, the revenue is £200.
2) With tax @ 25%, the revenue is £250, up £50.
3) With tax at 18%, the revenue is £180, down £20. But gain one new investor we get £180 x2 =£360, (£340 net) an increase of £160 (£140 net) on base of 20%.
I suggest that only an uninformed fool would wish to pursue such a policy.
