<p>It has always been difficult to justify the existence of a separate tax on corporations in a fiscal system based ultimately on individual ability to pay and many, indeed, have argued that the corporation tax should, in principle, be abrogated. Some, however, have contended that corporate status conveys certain privilages, especially with regards to limited liability, that would justify taxing companies according to the benefit principle; others suggest that the corporation tax adds to the progressivity of the income tax since a company's retained earnings would otherwise provide a shelter for those who had chosen to invest in the corporate sector.</p>
Authors
Julian Alworth
Said Business School, Oxford
Journal article details
- DOI
- 10.1111/j.1475-5890.1980.tb00562.x
- ISSN
- Print: 0143-5671 Online: 1475-5890
- Issue
- July 1980
Suggested citation
Alworth, J. (1980). 'Are there Feasible Reforms for Corporation Taxes?' (1980)
More from IFS
Understand this issue
Empty defence spending promises are a shot in the dark
comment
"The government’s announcement was misleading and opaque and does nobody any favours." Paul Johnson writes for the Times.
29 April 2024
Public investment: what you need to know
explainer
Everything you wanted to know about UK public investment but were too afraid to ask – including analysis of Labour and Conservative plans.
25 April 2024
The £600 billion problem awaiting the next government
podcast
We speak to David Gauke and Giles Wilkes, two experts who have been at the heart of the spending review process.
25 April 2024
Policy analysis
Recent trends in and the outlook for health-related benefits
report
Recipients of and spending on health-related benefits have risen rapidly since the start of the pandemic, posing a serious challenge for policymakers.
19 April 2024
4.2 million working-age people now claiming health-related benefits, could rise by 30% by the end of the decade
press release
Our new report sheds more light on forecasts for a substantial increase in the number of people claiming health-related benefits in coming years.
19 April 2024
Progression of nurses within the NHS
report
This report examines the career progression of NHS nurses, how this compares with that of other NHS staff groups and how this has changed over time.
12 April 2024
Academic research
The employment and distributional impacts of nationwide minimum wage changes
journal article
We assess the impact of the change in the UK’s minimum wage between 2016 and 2019 on wages, earnings, employment and household incomes.
10 April 2024
Unfunded mandates and taxation
journal article
In mid-2006, the Chinese central government increased the salaries and pensions of civil servants in its coastal areas but a funded mandate in others.
14 March 2024
Willingness to pay for improved public education and public healthcare systems: the role of income mobility prospects
journal article
These findings are based on more than 19,000 observations from the third round of the Life in Transition Survey.
14 March 2024