Interesting number here:
British businesses spend around £20billion per annum not on paying taxes, but merely on complying with taxation law.
The yield from corporation tax is around £45 billion (2008/9 figures from IFS) meaning that the cost of collection is nearly 50% of the revenue raised.
But wait! we can go further as well (even if this is on slightly dodgier ground). There is always a deadweight cost associated with taxation. At the margin, at around current tax levels, this is roughly 30% of the sum raised. Another £14 billion then.
So, it costs us £34 billion to raise tax of £45 billion. This simply isn\’t an efficient system.
Better by far to abolish corporation tax altogether and simply tax the income/returns when they arrive with people.
After all, companies don\’t pay tax, only people do: and we also know that 70% or so of the corporation tax burden is carried by the workers in the form of lower wages.
Vastly, humoungously, cheaper simply to tax capital and income when it arrives in pocketbooks and abolish the whole structure of corporation tax altogether.
Hey, if you really want you can get more tax revenue for the same hissing from the geese at the same time.