This is good news don\’t you think?
Richard Murphy, a tax expert who advised the NAO on its report on the performance of the UK Revenue and Customs, said that large companies are effectively now able to set their own tax rates. "Corporation tax is falling worldwide as a percentage of profits. Corporations seem to be deciding what they should pay, not as a percentage like the rest of us, but as a sum above which they don\’t want to go."
John Christensen, a former economic adviser to the Jersey government and director of the campaign group Tax Justice Network, said the Guardian investigation confirmed that the flight of capital was continuing, having reached unprecedented levels in the 1990s. "The trend in the last 30 years has been to shift the burden of tax away from companies on to the consumer and labour. Capital is increasingly going untaxed."
For as we know, the taxation of corporate profits actually leads to lower wages. Proof here. So we can in fact celebrate these glorious upholders of the workers\’ wages at the expense of the predatory State.
We might also note that capital isn\’t in fact going untaxed: it\’ just being taxed where it ought to be, at the level of the individual, when they receive their dividends or capital gains. A good thing all round then.