If I wanted to destroy the UK’s taxation-base….
..and I was Gordon Brown, then this is how I would start off.
I thought that Statists like taxation. I thought they liked to do it.
They not only like [other people] to pay it, but they like to raise [lots and] lots of it.
If they want to do it, then there perhaps ought to be something large and worthwhile to tax economically and profitably. Surely, it’s worth more net revenue to tax about 10,000 guys each collecting lump sums of say £200,000 each, every year year in year out, (40% of 20 billion = 8 billion for 10,000 audits) than to tax 20 million people each yielding, let us say, £4,000 each per year (80 billion for 20 million audits) and with the same volume of paperwork per unit as the big guys?
They will merely have 200 times the paperwork per billion raised, if they drive the Banks offshore, as they now will.
And I haven’t even costed in the marginal taxation-losses due to death of small-businesses who service the bonus-earners.