The supply-side economic policies proposed by the recent Truss government followed by their subsequent
reversal has triggered debate on the impact of taxation on the UK economy. In particular, recent events
have made the relationship between corporate taxation and investment into a public issue. This should
trigger some soul-searching in the UK Treasury on corporate taxation policy.
It is highly informative to look at case studies of particular industries. This paper traces the impact
of evolving corporation tax policy on the investment, revenues and exports of the Irish, UK and US
pharmaceutical industries, which serves as an ideal case study.
Low Corporate Tax Drives Pharmaceutical Investment
Does lower corporation tax genuinely lead to increased investment? While economists tend to approach
this question from a theoretical macro-modelling perspective (which has its place), detailed analysis by
industry business analysts can provide practical, empirical conclusions.
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