Any tax rise, such as the proposed increase in Corporation Tax as part of last weeks Budget, needs to be robustly assessed to ensure the increased rates won't in fact reduce revenue to the Treasury. Indeed, as the Laffer Curve shows us, tax rises can have a catastrophic affect on actual tax take. So Greg used his Topical Question slot at Treasury Questions this afternoon to press the Financial Secretary to the Treasury over whether HM Treasury plans to undertake dynamic scoring of the upcoming increases in Corporation Tax, akin to previous CGE modelling which detailed the economic benefits of Corporation Tax reductions since 2010. A niche question, maybe. But an important one.
