Between 2010 and 2020, the UK government progressively reduced the main rate of Corporation Tax from 28% to 19%. Advocates suggested this reform would stimulate domestic investment and increase the total tax yield, whereas critics argued it led to a net loss in government revenue of approximately £12 billion per year by the end of the decade.
Evaluate whether a reduction in direct tax rates will always lead to a decrease in government tax revenue.
68 exam-style questions on OCR A Level Economics Fiscal policy. Each one has a worked solution and a mark scheme showing where the marks go.