What the corporation tax data for the UK clearly shows is that there has been a fall in large company tax payments and an increase in small company payments.
Small company payments are rising simply because of the growth in the number of such companies.
OK, £5 billion to £20 billion a year, that’s a rise. Eyeballing the large company payments, a fall from £24 billion to £22 billion or so. So, a rise in the tital amount of corporation tax being paid.
But what is also shocking is that the share of profit has been going up in the economy and still there is a fall in revenue form big business.
But, umm, that rise in the profit share is going to those small businesses which are paying more corporation tax!
Not that there is much of such a rise, because Ritchie is making his usual mistake of thinking that the economy divides neatly into labour share and profit share. It doesn’t, meaning that a falling labour share does not, necessarily, mean a rising profit share. As it isn’t very much right now.
This blog is focussed on providing creative solutions to the tax and economic issues we face in the interests of all rather than a few. If your comment is not a constructive contribution to that process it may well be deleted.
Is it constructive to point out that he’s using the wrong evidence?