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Osborne plans to cut corporation tax again
Tory chancellor George Osborne, Osborne photo by FCO (Creative Commons), composite by James Ivens (Click to enlarge)
George Osborne announced on 4 July that he would cut corporation tax by a quarter, bringing it from 20% down to just 15%. This new rate will be among the lowest in Europe, pushing forward Osborne's plan to make the UK a global tax haven.
This shocking move contradicts Osborne's pre-Brexit threats of tax hikes. Once again, it shows the Tories' true objectives: to hand money to the rich at the expense of the poor.
Tax cuts for big businesses will result in further cuts in public spending, hitting the poorest hardest. Meanwhile, CEOs will award themselves fatter pay packets from their increased profits. The trade union leaders must respond to any attempt by the government to make workers pay for the bosses' crisis with coordinated strikes.
Tax breaks for the rich and big businesses are exactly the type of elite handout that both Leavers and many Remainers voted against in the EU referendum last month. Brexit was an enormous protest against the handing of money and power over to big business, and yet the Tories continue to do it.
Some of the largest corporations avoid paying most or all of their taxes anyway. The Socialist Party calls for the nationalisation of the top 150 corporations, and all corporate tax avoiders, under democratic working class control. Then workers could run the economy for the benefit of all, not the 1%.
The Brexit vote has left the Tories in chaos. Cuts to corporation tax will further alienate the public that voted decisively against big business. We must fight for a general election now, to oust this weak and divided government.