Tax cut plan has consequences
Published 10/07/2012 | 08:00
The Northern Ireland Conservatives still don't get it on corporation tax (Write Back, July 6).
If you cut corporation tax and, as a consequence, have to cut public-sector spending by an additional £500m-per-year, this will cost jobs not just in the public sector, but also in the private sector. The private sector could be pushed into a downwards spiral.
The Northern Ireland private sector will, indeed, have an additional £500m in profits. But will firms invest this money if the economy is nose-diving into greater depression? We wonder.
Will sufficient additional foreign direct investors arrive to rescue the situation? We doubt that also, given the present uncertain international investment climate.
The case against a corporation tax cut is not an anti-business argument, as Jonny Andrews alleges.
It is an argument to protect businesses and employees from potential disaster.
Labour Party in Northern Ireland