The United Kingdom's system of business taxes must be simplified if it is to remain competitive in the new, globalised economy warn MPs.
A report by the Commons Treasury Committee said that an "inexorable shift" in world economic power from West to East was under way, with the rise of China, India and other emerging nations.
Globalisation, it said, was already having a "profound effect" on the UK economy which was likely to increase over the next 10 to 20 years.
"The adverse effects of globalisation on individuals in the United Kingdom may in many cases be more tangible and immediate than the wider benefits for society and the economy as a whole," it said.
The committee warned that the fall-out would not just be felt by the low-skilled - as was sometimes predicted - as jobs migrated to countries where wages were lower. Many emerging economies were now investing in research and development and their skills bases, posing a threat to highly skilled jobs in the UK as well.
The committee said reform of the corporate tax system was essential to ensuring that Britain remained competitive as a location for business.
"Simplicity is likely to be crucial to the effectiveness of a corporate tax system in an increasingly globalised economy. We consider that the Government should provide a more thorough and systematic analysis of these matters and of the effectiveness of its measures to create a simpler and better administered tax system."
The committee called on the Government to publish an annual assessment on the development of globalisation alongside the Pre-Budget Report. It said that more work was also needed on the "unresolved issues" around economic immigration into the UK.
Committee chairman John McFall said: "Economic migration can enhance the skills base of the UK, which faces skills shortages and an ageing population.
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"At the same time Government policy needs to protect the welfare of less-skilled workers to prevent increasing poverty and alienation of certain groups of people in society."
