We need more businesses to see the UK as a 'low tax' option...
That way we can get a smaller cut of a much bigger pie...
Rather than a large cut of a tiny pie...
Right now all we really get from the big multinationals is VAT and Income tax from their workers...
IF we were to reduce their tax liability as a %, then they would see the UK as a much better option to base operations in and then we'd see a cut of their profits usually moved offshore...
for those of you who can't grasp that idea... think of it like this...
Company A has a turnover of £1000000 in the UK, £500,000 is expenses such as materials, wages etc...
the other £500,000 they 'pay' to their parent company based in another company, and as such is now profit of the offshore company NOT the UK company... WE get zilch....
IF the tax liability in the UK was lower for them, they would not move that £500,000 profit from the UK abroad, and would pay some tax on it.. great, BUT the same company may make £10,000,000 global profits, so IF they were offered a very low rate here, lower than they pay elsewhere, say at 5%, they would pay the tax to the UK, and our tax receipts go up, not down....
SO basically a higher tax rate here than abroad causes businesses to offshore profits, loosing the UKGOV money...
Downvote away for my suggestion of giving them lower tax rates...