Namely, the United Kingdom. Yesterday Chancellor George Osborne announced his plan to lower the corporate tax rate from its current 20 percent to 17 percent in 2018. (It was originally planned to fall to 18 percent in 2018). Additionally, the U.K. capital gains tax top rate will all from 28 percent to 20 percent, and the basic rate from 18 percent to 10 percent. In a speech yesterday, he noted,
“I can confirm today we’re going to reduce the rate of Corporation Tax even further. That’s the rate Britain’s profit-making companies – large and small – have to pay. And all the evidence shows it’s one of the most distortive and unproductive taxes there is.”
Besides the corporate and capital gains tax cuts, Osborne will effectively abolish the Petroleum Revenue tax that has been in place since 1975 (it currently applies to oil fields developed before 1993). There are also some tax breaks for small businesses and online entrepreneurs.
Seriously, folks – you should read the entire speech. It is so pro-growth and pro-investment it would embarrass Congress and the current administration. Maybe we should be more like Europe – at least the U.K.
The only downside is that some of the revenue will be made for through a nanny-style sugary soda tax. But the positives seem to outweigh the negatives in Osborne’s budget.