Thread by @DanNeidle

Four things many people believe about tax in the UK that just ain't so:

1. "UK corporation tax has been cut over the last 20 years". Nope. The headline rate has been cut, but the base has expanded. The proportion of corporate profits paid in tax has slightly *increased*.

2. "Compared to the rest of Europe, the UK under-taxes wealth and capital". Nope. The UK is unusual for how *high* a percentage of the tax burden falls on capital rather than labour.

3. "The UK under-taxes property". Again, nope. Inheritance tax, CGT stamp duty and business rates are all very flawed taxes. But, together, they raise more from property than comparable taxes elsewhere in the EU.

4. "Banks got a handout when the bank levy was cut."" Nope. The bank levy was reduced in 2015 and, to compensate, a new tax - the bank surcharge - was created. The projected overall effect was a slight *increase* in bank taxation.

There is plenty of scope for argument on the right level of tax, and huuuuge amount of scope for argument on how existing taxes should be designed. But it would be lovely if people would stop making claims about the UK tax system that just ain't true.

Sources:

1: sources - ons.gov.uk/economy/nation… and assets.publishing.service.gov.uk/government/upl…

2 and 3: EU Taxation Trends report 2018 - ec.europa.eu/taxation_custo…

4. assets.publishing.service.gov.uk/government/upl…

A few people have asked about my personal views: I believe in a significantly expanded public sector, funded by higher taxes. I see the distortions in the public debate about taxes as standing in the way of that.