Er....
Nominal GDP (the output of the UK economy, or put another way, UK national income) is around 27% larger this year than in 2010. Of course the corporation tax take is larger, whatever changes have been made to the rate. The base it's being taken from is much larger.
(On top of that, because in 2010 we were emerging from recession, the profit share was unusually low. So the level of total profits - the tax base corporation tax is taken from - has grown by a bit more than nominal GDP - boosting the tax base even more.)
So just comparing the tax take in the way you have doesn't make the case at all the a lower corporation tax rate has raised the amount of money collected. Economic growth has done that.
Posted By: Tricky Hawes on May 25th 2017 at 16:34:50
Message Thread
- FAO Larrald re Corporation Tax........ (General Chat) - Kirrie, May 25, 16:20:14
- Well.................................... ..... (General Chat) - Larry Hagman, May 25, 20:51:20
- Er.... (General Chat) - Tricky Hawes, May 25, 16:34:50
- Economic growth encouraged (in part) by lower corporation tax rates (General Chat) - Jim, May 25, 17:22:27
- (Of course, someone on your wing of politics (General Chat) - Tricky Hawes, May 25, 16:45:25
- Ah see this is WW2 as you have summarised the same argument above (n/m) (General Chat) - Jim, May 25, 17:23:26
- Sorry meant see my comment above is WW2 (n/m) (General Chat) - Jim, May 25, 17:23:50
- Ah see this is WW2 as you have summarised the same argument above (n/m) (General Chat) - Jim, May 25, 17:23:26
- details... (General Chat) - Ralf Scrampton, May 25, 16:42:36
- That's not quite true (General Chat) - Tricky Hawes, May 25, 16:57:33
- why would i not be adjusting for inflation when trying to compare across years? (General Chat) - Ralf Scrampton, May 25, 17:31:54
- because we were talking about the tax base (General Chat) - Tricky Hawes, May 25, 18:08:24
- which again gives a misleading picture dunt it? anyway your last 2 words were 'economic gr (General Chat) - Ralf Scrampton, May 25, 21:59:56
- Details (General Chat) - Old Git, May 25, 18:26:11
- it is isn't it? (n/m) (General Chat) - Ralf Scrampton, May 25, 22:01:21
- because we were talking about the tax base (General Chat) - Tricky Hawes, May 25, 18:08:24
- why would i not be adjusting for inflation when trying to compare across years? (General Chat) - Ralf Scrampton, May 25, 17:31:54
- That's not quite true (General Chat) - Tricky Hawes, May 25, 16:57:33
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