Businesses more likely to have lower tax rates as part of UK

Today, Alex Salmond has once again claimed that an independent Scotland in Europe would be able to cut corporation tax to attract more businesses to come here.

However, he glosses over the fact that France and Germany have called for common corporation and financial transaction taxes.

In Germany, corporation tax is as high as 33 per cent in some parts of the country, while the UK Government is planning to reduce it from 26 per cent to 23 per cent.

Alex Salmond has criticised David Cameron's use of the veto in Europe and welcomed the new 'pact within a pact' which is being introduced across the Eurozone. This seeks to harmonise corporation tax across Europe.

Even Professor John Kay, a former advisor to the SNP, has dismissed Alex Salmond's claim that a separate Scotland would be able to keep a low corporation tax to attract investors.

Ruth Davidson said:

"Alex Salmond is simply all over the place in trying to put forward his economic plan for how an independent Scotland would raise and spend its own money.

"His argument that he would slash corporation tax is incoherent at best and fails to take into account that Germany and France are intent on harmonising business taxes far and above the low levels set by countries like Ireland.

"That is the reality of so called independence in Europe. Our businesses are far more likely to have lower tax rates as part of the United Kingdom, while if Brussels or Bonn had control they would go up.

"We have to move on the substantive arguments of what a separate Scotland would look like and the time for empty rhetoric from Alex Salmond is over.

"On vital issues like corporation tax and other economic issues the Scottish people deserve a clear answer.

"I want Scotland's financial services industry to be protected from Euro-zone interference and Scotland's economy to remain part of Britain's sterling trading block.

"That is why Scotland is better off in Britain."

Speaking on the BBC's Andrew Marr show Alex Salmond said "our strategy is to lower business tax" tp attract more businesses to Scotland.

He later added: "The key point is very important in terms of the future of attracting new business Headquaters to Scotland is that we have an extremely competitive rate of corporation tax, that's our policy."

Corporation tax rates in Eurozone countries (including local surcharges):

UK 26% (soon reducing to 23%)

Spain 30%

Italy 31.4%

France 33.3%

Germany 30-33%

EU plan to have common corporation tax:

http://www.bbc.co.uk/news/world-europe-16075890

Sunday Herald – Salmond living in 'fantasy land' over tax plans, says former advisor:

http://www.heraldscotland.com/politics/political-news/salmond-in-fantasy-land-over-tax-plans-says-former-adviser.1327806454

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