If you include the income tax of employees it is a lot higher. Perhaps we need window dressing to make people happy. Stop doing "income" tax and convert it to "payroll" tax. Gov gets the same amount, people can stop complaining about companies not paying tax. But at the end of the day, it's all window dressing.
But that's not paid by the corp, it's paid by the employee.
its window dressing - either way it's going to be paid. no one is going to win out either way if its moved, the gov still gets its money.
By income taxes do you mean personal income tax? In any case, corporations benefit from airports / roads / ports / law enforcement / defense / education / etc... which are funded by local / federal governments. So corporations have a moral duty for to contribute to these expenses by paying taxes. (But it is only a moral duty, and not a legal obligation. So corporations end up paying nothing, or next to nothing.)
But why not just tax the owners of the corporation more to accomplish those same goals? Why doesn’t the moral obligation rest with the owners of the company, rather than this legal construct that was created on paper? Corporations aren’t rich people - they are machines that allocate capital and eventually return the money with profit to the owners. They can be owned by rich people, and we can tax them. When we add ta…
Because rich people can reduce their income to 0 or close to 0 via different legal ways like LLCs, funneling through other corps, certain investments(which are basically tax-money laundering schemes), being tax residents of tax havens, etc. It depends on the country what you can do. In Germany, it's basically 0.
Most of my health expenses, sure. Not necessarily all of them, unless I play games and live within allowed limits of tax advantaged savings accounts which might just eat my money at the end of the year. My vacations, car payments, food expenses, and housing expenses are absolutely not able to be written off. One part of my housing expenses may be able to be written off, but not anywhere near all of them. Some educati…
HSAs carry over from year to year. The only limit is contribution amount. https://www.fidelity.com/learning-center/smart-money/hsa-con...
I really need a good explanation for the assertion about corporate taxes, as it makes no real sense. Frankly, it sounds like corporate propaganda.
I think the idea is that corporations are the most efficient entities in the economy in terms of allocating capital. They have to be, or they go under. And when they have extra cash, investors tend to demand that it be deployed or paid back to them as dividends. So the natural incentive is for companies to run with the leanest possible capitalization and generate the biggest possible profits. So when you take cash aw…
The problem of course is that capital is mostly concentrated to a few, well connected families.
I really need a good explanation for the assertion about corporate taxes, as it makes no real sense. Frankly, it sounds like corporate propaganda.
I think the idea is that corporations are the most efficient entities in the economy in terms of allocating capital. They have to be, or they go under. And when they have extra cash, investors tend to demand that it be deployed or paid back to them as dividends. So the natural incentive is for companies to run with the leanest possible capitalization and generate the biggest possible profits. So when you take cash aw…
> I think the idea is that corporations are the most efficient entities in the economy in terms of allocating capital.
This number is actually a shame in the sense that it shows how little taxes are paid by other big companies.
The correct corporate tax rate is zero, or the correct income tax rate is zero. Double taxation on employees of corporations is ludicrous and warping. IMO corporate tax should be zero, and we tax individual people instead.
I'm no expert, but corporations act as their own legal entities with protected speech. We would have to remove other legal entitlements that benefit them more. They can't have cake and eat it too as they say. I would also like to pay zero tax.
For the hundredth time, it is not double taxation. Money is taxed (generally) whenever it moves between parties. You paid tax on your income; you give (some of) it to someone else for goods or services - they pay taxes on it again. That's not double taxation, that's how tax works. Money flows to the corporation. They pay some to employees, who pay tax on their income. They (might) pay some to shareholders, who (might…
It definitely is double taxation. (1st level: corporation, 2nd level: shareholders). But the point is that the owners accept double taxation in exchange for the protections of the corporate form, like a legal liability shield, treatment of ownership interests as capital assets subject to lower tax rates on sale, deferral of taxation of shareholders' allocable shares of the business' income (as represented by dividend…
The corporation and shareholders aren't the same entity. How is N entities paying N taxes double tax?
If you include the income tax of employees it is a lot higher. Perhaps we need window dressing to make people happy. Stop doing "income" tax and convert it to "payroll" tax. Gov gets the same amount, people can stop complaining about companies not paying tax. But at the end of the day, it's all window dressing.
Don't forget sales tax. There are many forms of taxation. How fascinating.
The rule of law, and the democratic lawmaking process is based on text, not mind reading.
Well I can pull up exactly what proponents of The Taxpayer Relief Act of 1997, which introduced the Roth IRA, stated their intentions were since this is very easy to find and widely documented but I strongly suspect you don't actually give a fuck about reality. So my time spent on this ends now.
The intentions of lawmakers when making laws do not matter; the thing that is voted on and passed is the text of the law, not their intentions.