THE CASE FOR LOW CORPORATE TAXATION - Lessons from the International

• Why UK Pharma Matters – The history of UK pharma manufacturing indicates that the UK can be a fast-growing powerhouse of pharma exports – Before decline set in 2009-10, UK exports of pharmaceuticals to the EU grew by a CAGR of 10.2 per cent · This was the fastest, sustained growth rate notched up by a major export sector of UK manufacturing in trade with EU markets over the past 20 years · The C. [...] THE CASE FOR LOW CORPORATE TAXATION - Lessons from the International Pharmaceutical Industry 5 THE CASE FOR LOW CORPORATE TAXATION Lessons from the International Pharmaceutical Industry 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. [...] So, is there are a link between the two: does a low corporate tax rate lead to increased investment in pharma manufacturing, and vice versa? In the following sections of this paper, we compare the pharma industry outcomes resulting from three different corporate taxation regimes in the UK, Ireland, and the US. [...] According to the Irish inward investment agency, the IDA, Ireland has seen ‘close to’ the biggest investment in biotech facilities anywhere in the world over the last decade.5 This observation matches the export trajectory in the graph above. [...] In a late-2019 testimony to a Congressional committee, the Director of the Center for Drug Evaluation and Research (CDER) at the US Food and Drug Administration commented that, while the US is a world leader in drug discovery and development through its biomedical research, the US “is no longer at the forefront of drug manufacturing...