Re: Get rid of corporation tax...
Tremendously poor idea. I can't believe Nigel Lawson talked about doing it.
Would it just be retail sales? In that case manufacturers would pay nothing?
If its all sales between companies then it would put products with a long supply-chain at a tremendous disadvantage and have perverse effects on how things get made.
If the tax could be passed between companies to get round the above then how does it differ from VAT?
Some businesses are high-volume and low-margin. They'd be fucked. How would it differentiate?
There's a reason we tax profit rather than revenue and just because there are some drawbacks to this model doesn't mean we should throw it away in favour of something clearly worse.