Disappointed to hear talk of corporate tax rises in the March #Budget. The @FT is reporting that the ‘Chancellor believes it fair to ask for more after taxpayer support during pandemic’. This is a weak argument, for many reasons… (1/6)

#rishisunak

For a start, there is no immediate need for tax rises *of any kind*. Borrowing will fall sharply as the economy rebounds, and debt is cheap and easy to finance. Raising taxes (including corporate taxes) could simply hold back the recovery. (2/6)

It’s also wrong to see business as an independent revenue source. Companies are only legal entities and cannot bear the economic burden of tax rises themselves. Some of the cost will be borne by shareholders (incl. pensioners), but some passed on to consumers and employees. (3/6)

The argument that it would be 'fair' to raise corporate taxes to repay Covid support is muddled too. Companies that have benefited the most from this support (especially those saved from bankruptcy) will already pay more tax as they return to profit… (4/6)

…but any increase in corporate tax rates would presumably raise the most money from businesses that have been able to thrive during the pandemic and were least likely to have relied on government support. This would therefore be a tax on success. (5/6)

Final thought: if the government is going to raise corporate taxes ‘to pay for Covid’, should those businesses that have voluntarily chosen to return taxpayer support now ask for the money back again? (6/6)