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Corporation Tax

HM Treasury written question – answered on 11th September 2017.

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Photo of Alan Brown Alan Brown Shadow SNP Spokesperson (Transport), Shadow SNP Spokesperson (Infrastructure and Energy)

To ask Mr Chancellor of the Exchequer, pursuant to the Answer of 28 June 2017 to Question 957, what the evidential basis is for the increase in corporation tax receipts referred to being directly attributable to reductions in the rate of corporation tax.

Photo of Mel Stride Mel Stride Financial Secretary to the Treasury and Paymaster General

The OECD has found that cutting corporation taxes can increase GDP, and this is backed up by Government modelling in 2016 which estimated that cuts announced since 2010 could increase GDP by up to 1.3% in the long run. The increased profits, wages, employment and consumption that come with higher growth all feed through into higher tax revenues.

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