And international agreements that limit them?
A very substantial source of avoidance – practised by the usual suspects, Google, Facebook, Airbnb and others – involves selling into the UK from tax havens abroad. We should tackle this with a Foreign Sales Levy on large companies who engage in that practice. Base yourself here and you can pay corporation tax – but if you choose to game the system by selling to UK customers from tax havens you will pay a substitute for the corporation tax you are dodging.
Of course, a tax on corporate turnover throws up unfairnesses but – a universal answer to those who complain about measures that combat tax dodging, this – those unfairnesses are the consequences of choices made by taxpayers. If you don’t like the turnover tax, operate from within the jurisdiction.
But quite aside from this it hard to understand why our tax system should prefer the wealthy to higher earners. The trend should be to cut taxes on income and increase taxes on wealth.
Because the entirety of tax efficiency theory says tax income not wealth.
Why are taxes on earned income considerably higher than taxes on the income fruits of wealth? Bring the latter up to the level of the former – not at all difficult to do – and we would generate very substantial additional tax receipts and in a rational and progressive fashion.
Ditto, there are libraries full of this stuff, Nobels have been awarded for it.