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, May 25, 16:34:50