Scrap corporation tax?

 Scrap corporation tax to reboot Britain

A report from the Adam Smith Institute suggests Britain should abolish corporation tax, inheritance tax and capital gains tax, as part of a series of changes to “reboot Britain” post-Brexit. The think-tank says corporation tax should be cut to 12.5%, then 6.25%, before finally being scrapped altogether. Madsen Pirie, president of the Institute, said that leaving the European Union provided "a unique chance of the sort that occurs perhaps once in a generation". He added: "There is a false belief that [corporation tax] is paid by companies, but it is not. It is paid by the employees of companies, by their customers, and by their shareholders." Income tax should be flattened over time with the aim of establishing a system where workers on the minimum wage paid no tax, while those earning more would face a flat rate. His comments came as Philip Hammond, the Chancellor of the Exchequer, refused to confirm whether he would follow through on George Osborne’s pledge to cut corporation tax below 15%. Mr Hammond said ministers "will not just be looking at headline rates, we will be looking at what the marginal effective rates of corporate tax are for investors in the UK".

Source: The Times (20/07/2016)