Owen Jones has annoyed me today

Owen Jones doesn’t understand what Britain has become:

The question is, what would a new Scotland look like? Despite its progressive rhetoric, the SNP would hand big business a mighty cheque in the form of cuts to corporation tax that would out-Osborne the current Tory Chancellor.

Owen JonesI really think the corporation tax stuff is overblown. The argument feels like politics-by-symbolism. You can already get 0% corporation tax in the British Isles – go register a trust in Jersey. Do your banking in London and Edinburgh. Brilliant. Corporation tax is basically dead in the water at the moment. All of Google’s European profits are made in Ireland, supposedly.

It makes sense for small countries near large financial centres to maintain a lower corporation tax rate than those financial centres, reduce air passenger duty etc. Not because of the effect on tax but because of the power that comes with hosting corporate HQs. A rate 3% below London’s puts Edinburgh on more of an even footing with London, it doesn’t start a race to the bottom – the real race to the bottom is versus London’s adjuncts, Jersey and the Isle of Man and the Caymans, and has already happened.

We need to reform corporation tax so that corporations are taxed on the value added in each country, rather than where they register the profits. That would be a worthwhile tax. Land value tax would be great, because it would break up the feudal estates and open them to the progressive forces of capitalism.

Any suggestion that the SNP are not the most social democratic mainstream party available in the UK right now is nonsense.

Basil Greyskull @bgreysk:

@WingsScotland @mathewkumar Owen Jones is playing Championship Labour Manager ’98-’99, fielding fantasy policies to a fictional electorate

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