Osborne has started a new quiet revolution by cutting down the corporate tax. He said that the new HMRC would increase the investment and the economic growth. After knowing about the autumn statement, the people would have different opinions about the tax cut.
New HMRC analysis
The new HMRC analysis would increase the wage according to the Chancellor. He said that it would offset about 60pc of the revenue which is lost by cutting the corporate tax. The coalition will be lowered from 23pc to 21pc and in two years, it will be reduced to 20pc, according to him.
Reason for HMRC changes
When asked about the reason for the changes in HMRC, he said that the earlier analysis was focused on public tax cuts and now the wider economic impacts are taken into consideration. He said that he wanted to start a quiet revolution on how the people would think about these tax cuts. This method is called as dynamic modelling and it is used for deciding the raise in scrap fuel duty and personal allowances. He is against the ‘Help to buy’ scheme and tags it as adding vodka to punch bowl. He said that BoE has a plan not to extend it beyond the planned three year period and the bank does not have the power to stop it within the three years.