2. CIT revenues are rising. In a world of rising fiscal pressures there is a continuing need for revenue, and corporate profits are a continuing source of it. We need to do more to understand whether these increases are driven by higher profits or broader tax bases – we are working on it!

1. The stablisation of CIT rates is continuing. Each year for the past several years I continue to ask myself whether the stablisation is a brief anomaly before the race to the bottom recommences. So far that is not the case, with rates even rising modestly within the OECD. 2/

This is an important point re the CIT & inequality. Our recent work highlights that the decline in CIT has incentivised incorporation in the OECD. The revenue costs of CIT cuts aren't seen just in CIT, but in PIT as well. One of the reasons why CIT revenues remain bouyant in spite of rate cuts.

What do we find? Functions such as holding or the provision of internal group finance are negatively associated with CIT, some significantly more strongly than standard estimates of investment elasticity. Conversely, more routine functions such as manufacturing and sales are less influenced. 6/

Continuing the not-so-subtle plug, there is also stablisation of headline CIT rates and of rates under IP regimes.

Some similar figures in corporate tax statistics we published during the summer. Three different sets of downward lines for investment hubs. As you say, too early to say for sure, but it could turn into a trend.