That's according to Richard Lambert in his first major speech as the new director-general of the Confederation of British Industry (CBI).

Mr Lambert claimed that too few politicans understand how business works and called for the creation of a free trade, low tax and high skill economy.

He said:

"In a world where capital can flow from high tax to low tax economies, the burden of heavy corporate tax is not just born by shareholders - a large proportion of whom represent pensioners anyway - but also by customers, suppliers and, particularly, by employees. High business taxes cost jobs and hold down wages."

Mr Lambert was talking to an audience of business leaders, politicans, policy makers and journalists. Read more of his speech on the CBI website.