Yet as corporation tax rates have come down in the UK, from 52% in the late 1970s to 28% today, total revenue from the levy has remained surprisingly buoyant. EU figures show that the UK\’s corporation tax take was worth 3.6% of GDP in 2008 – down slightly from 4% in 2006, before the credit crunch, but little changed from a decade earlier. When Margaret Thatcher came to power in 1979, the corporation tax take, at £4.6bn, formed 5.4% of total tax revenues. Last year, the £38.5bn paid by Britain\’s companies made up 7% of the government\’s tax take.
Darn that Laffer Curve, it\’s everywhere!