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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.

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    $\begingroup$ 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. $\endgroup$ – Brian Romanchuk Sep 1 '20 at 19:30
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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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