It’s a classic story: Britain leaves the EU, a new government comes in, a big tax cut is given, and everyone starts paying more taxes.
But this story has a twist: the new government also gets a major tax cut.
In the Brexit playbook, this would be a win for the UK.
But it’s a big win for companies.
If the UK were to leave the EU without a tax cut, it would cause a huge trade imbalance.
That’s because many of the companies that were once big winners from Britain’s trade with Europe, including Airbus and Ford, would be hurt.
Companies could then find it harder to compete in the European market.
And that could create a vicious circle of bad economic news for the British economy.
In this episode of Recode, host Kara Swisher and business reporter Kara Swain talk about the new Brexit deal, how big businesses could benefit, and what it means for our economy.