Difficult to take seriously someone who says this:
A 2016 IFS report shows that property tax raises relatively little revenue in Britain.
The OECD says that Britain raises more in taxation upon property than any other OECD nation. Some 11 or 12% of tax revenue raised as opposed to a 3 or 4% average. For rates are indeed a tax upon property and they do, together, raise some £60 billion a year or more.
Not believing this bloke also turns out to be wise:
The assertion that increases in the corporate income tax would be paid by employees is if anything less credible than the stockholder argument. Corporations cannot directly charge employees for the tax they pay. The mechanism that the IFS have in mind must be indirect, through wages levels, that higher corporate tax payments by reducing corporate profits reduce potential wage increases. This is unlikely to be important in the UK current context.
No, the argument has been around since 1899, from Seligman.
Capital added to labour is what increases productivity. Productive workers get paid more. If we reduce the amount of capital added to labour we get lower wages. Taxing profits reduces the after tax return to investing in adding capital to labour. Given that there is an average return to capital across taxing jurisdictions those who tax capital returns will see lower wages in that long run.
Across companies the relative bargaining power of employees and employers determines wage outcomes. Since the crash of 2008 private sector real wages have grown very slowly and remain below their pre-crash level. These were years during which the corporate tax rate fell from 28% to 19% (shown in a graph from Trading Economics). If as IFS believe higher corporate tax rates depress wage growth, then lower rates should have increased wage growth, for which there is no evidence. In the abstract, corporate profitability is one of many factors influencing wages changes. It does not appear as an important influence in the UK in recent years.
‘E’s entirely missing the actual argument, isn’t he?