Re: Who to blame?
Who said anything about keeping the tax rate at 20%? As the gross is now being taxed, the rate would be much lower and the amount to the Exchequer the same. In you example that would be a tax rate of only 2% on the gross. Actually, the amount would be even lower again because avoidance is (hopefully) so much harder.
The current system is not viable. I get skinned 20% on (just about) everything I buy, I get taxed (just about) 40% on my gross income and mega-corps pay...nada, the super-rich pay...nada (with one or two notable exceptions).