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First published in the Wall Street Journal, 22 November 2016.
Both Theresa May and Donald Trump are backing tax cuts to keep companies at home and attracting new ones.
An international race to lower corporate taxes is back in the global spotlight after Britain recommitted to slashing rates and as the election of Donald Trump puts U.S. corporate-tax overhauls on the front burner.
UK Prime Minister Theresa May on Monday officially endorsed a move by Britain’s previous Conservative government to lower the main corporate rate there to 17% by 2020, from today’s 20%. President-elect Donald Trump promoted on the campaign trail a 15% US headline corporate tax-rate—down from the current 35%.
Discover more: Global competition to cut corporate taxes heats up
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Britain has a large deficit and is very constrained on how much tax-cutting it can do. The government could speed up implementing the 17% rate but it’s hard to see how they can do a major move down.