Saatchi & Saatchi founder, Lord Saatchi has urged the government to axe corporation tax for small businesses employing fewer than 50 people and remove capital gains tax for all investors in such firms in order to combat ‘cartel capitalism’.
Writing in The Telegraph Saatchi asserts that such measures would be to the ‘benefit of everyone’ by allowing smaller firms to better compete with larger competitors.
Saatchi, himself a former chairman of the Conservative party, now chairs the Centre for Policy Studies a centre-right think tank founded by Margaret Thatcher.
Saatchi, famed for his 1980s Conservative election campaign work, wrote: “The Policy, as I call it, would therefore abolish corporation tax for 90 per cent of UK companies, reduce the deficit faster than predicted by the Office for Budget Responsibility (OBR) , expand employment faster than it predicts, increase competition, challenge cartel capitalism and let millions of people grow tall.
“The nation as a whole will benefit from a change in culture as big as Right to Buy in the Eighties; there will be greater economic growth and lower unemployment than currently forecast by the OBR, more competitive market places, and more freedom and independence from Big Government and Big Companies.”
Small businesses presently pay 20 per cent of profits in Corporation Tax, generating £8bn annually for the Treasury.