Maurice Saatchi, the man behind the £10,000 income tax threshold, has delivered a revolutionary new tax Policy which will see small and medium-sized businesses (SMEs) pay no corporation tax and which will abolish capital gains tax for their investors.
This brief animation explains the Policy launched by Lord Saatchi and the Centre for Policy Studies on Wednesday 18 June 2014 at the Margaret Thatcher Conference on Liberty.
If the Policy is adopted it will:
- Raise additional tax revenue for the Treasury within four years
- Encourage extra spending and job creation by SMEs
- Support investment, freeing SMEs from reliance on restricted bank lending for expansion.
It has got the whole country talking and has ignited conversations across social media.
You can watch Lord Saatchi’s full interview on Newsnight where he revealed The Policy here (begins at 16.28).
Lord Saatchi has written for The Daily Telegraph about The Policy. He says: “These individuals will enjoy the opportunity to say: “I am the captain of my ship.” It will mean more money for them – and the first step on “the road from serfdom”.” Read the full article here: http://bit.ly/1juS1Cp
The Daily Telegraph have also featured the story on their front page: “Lord Saatchi: Cut corporation tax for small businesses“, as well as reports on as well as reports on The Times, The Daily Mail, BBC (full video here), The Week, and The Drum.
Saatchi believes the policy would have as liberating an effect on individuals and the economy as the sale of council housing did in the 1980s:
“This policy is designed to empower and liberate Britons, crushed by big corporations on the one hand and by the state on the other. I want people to be captains of their own ships and have more freedom.
“The answer is not more regulation but to increase competition, to challenge Cartel Capitalism and to change the culture of Britain.”
Around nine in 10 of all UK companies are small companies, which account for around half of all non-government employment.
And it is affordable: detailed modelling shows that within four years, the deficit and the debt would both fall faster, and employment would also grow faster, than predicted by the OBR.
Watch Lord Saatchi launch The Policy at the Margaret Thatcher Conference on Liberty:
New polling indicates that people trust neither Big Business nor Big Government.
Do you trust…?
| Big Companies | Big Government | |
| NO | 69% | 71% |
| YES | 21% | 20% |
| DON’T KNOW | 10% | 9% |
Polling conducted by ComRes who interviewed 2,060 British adults online between 23 and 26 May 2014. Data were weighted to be representative of all GB adults aged 18+.
Modelling
The financial model and accompanying technical paper which illustrate how the Policy increases economic growth and jobs while lowering the deficit and minimising the impact of tax avoidance and “gaming the tax system” is below.
Download spreadsheet of the model data.
Click here for the explanatory note.
