<p>In this case we would say that duty levied on the lottery would <strong>erode the tax base</strong> for corporate tax. However, you should note that eroding tax base is a general term that can be applied to any action that decreases the taxable income/wealth/economic activity. But I dont think there is any more specific word in economic jargon just for that.</p>

CC BY-SA 4.0
2020-09-01T14:20:14.357Z
2020-09-01T14:26:55.913Z
2020-09-01T14:26:55.913Z
1muflon1
<p>The context for the question is a situation where a government-owned lottery pays corporation tax, but an additional betting duty levied on individual gamblers reduces the lottery's profits, thereby decreasing the amount of corporation tax received by the State.</p>

CC BY-SA 4.0
2020-09-01T19:30:48.650Z
Almost every tax erodes every other tax. E.g., income taxes reduce after-tax spending capacity, mist likely reducing literally every other tax that is dependent upon expenditures.
Brian Romanchuk
<taxation>
What is the term for the cannibalization of one tax by another?
Erik Kowal
# What is the term for the cannibalization of one tax by another?

(Asked by: username_0 on 2020-09-01)

The context for the question is a situation where a government-owned lottery pays corporation tax, but an additional betting duty levied on individual gamblers reduces the lottery's profits, thereby decreasing the amount of corporation tax received by the State.

**Tags:** taxation

> **Comments:**
> **username_1**: Almost every tax erodes every other tax. E.g., income taxes reduce after-tax spending capacity, mist likely reducing literally every other tax that is dependent upon expenditures.  

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## 1 answers

### Answer by username_2 on 2020-09-01. Score: 2

In this case we would say that duty levied on the lottery would **erode the tax base** for corporate tax. However, you should note that eroding tax base is a general term that can be applied to any action that decreases the taxable income/wealth/economic activity. But I dont think there is any more specific word in economic jargon just for that.


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