Re: The system is broken
correct - didn't put much thought into it other than to see if anyone had thought it through further than the response you gave, cogent as it would seem to be.
Taxing profit turns up the intractable problem of how to stop multi-nationals exporting their profit through clever little schemes, as previously advertised. Have yet to hear any way to block that hole easily.
So why not kick the alternative on a bit further - doesn't hurt to think the stupid to see if there is something the other side.
In your example, Omnicorp has now coughed up £1.8billion more than before. Mirror that across the enterprise world and HMRC should be raking in huge extra dosh. Reducing the actual tax percentage (in your example you work off 20%) to counter-act that, plus maybe a bit of sliding scale action (like personal tax bands) and you should able to shuffle the payables by Omnicorp to a more manageable/acceptable level and bring Mr Smith's liabilty down to, who knows, even zero (it was only £2K under the old system - Omnicorp's extra dollop is many thousands of Mr Smiths).
not so stupid, maybe.