{"id":19353,"date":"2013-02-27T11:37:33","date_gmt":"2013-02-27T11:37:33","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=19353"},"modified":"2013-02-27T11:37:33","modified_gmt":"2013-02-27T11:37:33","slug":"corporate-tax-receipts-are-falling-but-were-not-getting-growth-as-a-result-so-why-keep-cutting-corporate-tax-rates","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2013\/02\/27\/corporate-tax-receipts-are-falling-but-were-not-getting-growth-as-a-result-so-why-keep-cutting-corporate-tax-rates\/","title":{"rendered":"Corporate tax receipts are falling – but we’re not getting growth as a result. So why keep cutting corporate tax rates?"},"content":{"rendered":"

The\u00a0Institute for Fiscal Studies Green Budget<\/a> last week included the following chart:<\/p>\n

\"Screen<\/a><\/p>\n

I think it's a telling graph. As a result of\u00a0deliberate\u00a0UK\u00a0government\u00a0policy of cutting\u00a0corporate\u00a0tax receipts, whilst raising taxes elsewhere, and of cutting the UK\u00a0corporate\u00a0tax base by\u00a0excluding\u00a0all profits arising\u00a0from\u00a0outside the UK, the real level of\u00a0corporate\u00a0tax receipts is falling, as a share of tax revenues it is on a long term\u00a0downward\u00a0trend when the trend in\u00a0corporate\u00a0profits over the same period is markedly upwards and as a share of national income it will near enough halve since the late 1990s. contributing in the process to the massive\u00a0increases\u00a0in\u00a0inequality\u00a0in\u00a0wealth\u00a0and income over that\u00a0period.<\/p>\n

I stress: this is not chance. This is by design. The Tories can't blame all the fall in corporation tax\u00a0receipts\u00a0on tax avoidance; most of it they're just giving away during a\u00a0period\u00a0of\u00a0austerity\u00a0and at a time when Ernst & Young estimate large UK\u00a0corporates\u00a0have more than \u00a3750 billion in cash on their balance sheets<\/a>, meaning that they do not need tax cuts to provide the means to invest.<\/p>\n

What this actually means is the\u00a0corporate\u00a0tax system is itself bankrupt. The answer\u00a0according\u00a0to the IFS is:<\/p>\n

\"Screen<\/a><\/p>\n

 <\/p>\n

Yes, that's unitary taxation; the same answer as the\u00a0Tax Justice Network proposes<\/a>.<\/p>\n

For once we're on the same hymn sheet.<\/p>\n

There's more on all this here<\/a>.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The\u00a0Institute for Fiscal Studies Green Budget last week included the following chart: I think it’s a telling graph. As a result of\u00a0deliberate\u00a0UK\u00a0government\u00a0policy of cutting\u00a0corporate\u00a0tax receipts,
 Read the full article…<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102],"tags":[],"class_list":["post-19353","post","type-post","status-publish","format-standard","hentry","category-unitary-taxation"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/19353","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=19353"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/19353\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=19353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=19353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=19353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}