Let’s instead think of reasons why such a move is really bad for the UK.
First, it increases social tension. Why should big business have a tax rate less than the basic rate of income tax? Where is the logic in that? Of course people will be aggrieved.
Second inequality will rise. Dividends are assumed to have had basic rate tax paid in them at source. That is, in effect, assumed to be settled by corporation tax but this will now be lower than the income tax rate. The effect will be that investment income will be even more lowly taxed, and it already enjoys much lower rates than income from work. And since dividends are very largely enjoyed by the better off (and yes, most pensioners are better off) this will automatically increase inequality.
Third, there will be an increase in tax avoidance. Small business will have every incentive to incorporate to avoid tax. Unless the cuts will not apply to them this will be a straight gift to the tax avoidance industry. It’s hard to think of anything more bizarre.
It’s the combination of para 2 and 3 which just works so well. Because in para 3 he sees that it’s really the individuals who pay the tax – this must be so if different individuals pay different tax rates. But in para 2 he’s wibbling about the incidence being upon the company.
And 4 isn’t bad either. Tax avoidance is only people using the law in a manner that a reasonable legislator could not have foreseen. And if even the Spudmonster can foresee it then it can’t be tax avoidance, can it?