Letters / Poor will pay for deficit
“Nicola Sturgeon has said that her party will implement a fairer tax system in an independent Scotland – one in which everyone pays a fair amount of tax based on income”.
Willie Nicolson is obviously very naive (Flawed logic, SN, 17 July 13) as well as politically and logically challenged; firstly for believing Nicola Sturgeon’s sweeping statement and secondly for not researching and understanding all of the SNP’s policies, which will have a knock-on effect on how much tax we will pay in an independent Scotland.
Salmond argues that setting Scotland’s corporate tax threshold three per cent below that of the United Kingdom’s, which currently stands at 23 per cent but is due to fall to 20 per cent in 2015. Hence inducing a six per cent overall reduction in corporation tax and losing millions of pounds in the process will attract investment, boost growth and create as many as 27,000 Scottish jobs over the next two decades.
Despite the fact that it is proven that this policy is foolhardy (there are those in the SNP who are against it) the First Minister has stuck rigidly to this highly flawed hypothesis.
Canada’s experiment with lower business tariffs is instructive here. Between 2006 and 2012, successive federal administrations slashed corporate tax from 21 per cent to 15 per cent in anticipation that companies would use the savings to hire more staff, invest in research and purchase new equipment.
Instead, they hoarded the cash and hiked pay for their executives, compounding the national deficit and paving the way for additional spending cuts.
This is what will happen in an independent Scotland, but the effect will be compounded by the loss of over 20,000 jobs between Faslane and the Glasgow ship building industry.
Creating a massive deficit in future tax receipts which will be picked up by the poor, the old and over taxed worker.
Gordon Harmer
Brae
Become a supporter of Shetland News
Shetland News is asking its many readers to consider start paying for their dose of the latest local news delivered straight to their PC, tablet or mobile phone.
Journalism comes at a price and because that price is not being paid in today’s rapidly changing media world, most publishers - national and local - struggle financially despite very healthy audience figures.
Most online publishers have started charging for access to their websites, others have chosen a different route. Shetland News currently has over 600 supporters who are all making small voluntary financial contributions. All funds go towards covering our cost and improving the service further.
Your contribution will ensure Shetland News can: -
- Bring you the headlines as they happen;
- Stay editorially independent;
- Give a voice to the community;
- Grow site traffic further;
- Research and publish more in-depth news, including more Shetland Lives features.
If you appreciate what we do and feel strongly about impartial local journalism, then please become a supporter of Shetland News by either making a single payment or monthly subscription.
Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.