Yahoo- the start of a business drain

Yahoo has now confirmed that it will be moving to Geneva in Switzerland where the taxes are much lower in order to “increase financial performance”. This movement has only baited suspicions of a ‘business drain’ much like the ‘brain drain’ when the UK had ridiculously high tax brackets. Business leaders have warned the Treasury that, if these taxes continue to rise, the number of businesses relocating will grow substantially, which would cripple the already slowing economy. Nearly a fifth of UK tax receipts come from financial institutions in the City of London. The CBI urged the treasury to reduce business tax to 18 percent but Mr Darling decided on a 2 percent drop (30%-28%) which is well above Switzerland at 20% and Bermuda at 2%. It looks like the UK may have helped ensure its own descent into a recession.