Corporation Tax is not fit for purpose. This new Briefing Note for the 2020 Tax Commission, written by Commissioner and Associate Professor of Economics at the ESCP Europe Business School Anthony J. Evans, measures the tax against four key criteria, and finds that it drives down wages; lowers returns for shareholders; and raises prices for consumers.
Matthew Sinclair, Director of the TaxPayers’ Alliance, said:
“Companies don’t pay taxes, people do, whether that means shareholders like pension funds or workers who get lower wages. High corporate taxes are such an economic disaster that cutting them significantly can leave ordinary workers hundreds of pounds a year better off and ultimately even produce more of a return for the public purse. The Government are right to see this as a real priority, and could be even more aggressive to cut taxes so everyone can see a light at the end of the tunnel after years of depressing economic news.”
Read more over at the TPA.
I'd be minded to abolish corporation tax altogether. My only reservation is that it could allow foreign companies to funnel profits out of the UK. If that is a legitimate concern, I expect there are other ways to address it.